TDS APPLICABILITY....../
This query is : Resolved
Suresh S. Tejwani
(Querist)
23 April 2026
Whether TDS applicable on business support services ?
if yes then under which section and rate?
HSN code : 00440366
if yes then under which section and rate?
HSN code : 00440366
23 April 2026
TDS applicability on “business support services” depends on the actual nature of the service contract, not merely on code 00440366. If the service is in the nature of routine contract work / support operations, TDS may apply under section 393, Sl. No. 6(i) at 1% / 2%. If it is in the nature of professional or consultancy services, it may apply under section 393, Sl. No. 6(iii) at 10%. If it is truly technical / managerial consultancy, it may apply at 2% under the same clause. Therefore, invoice description, scope of work, and agreement terms should be checked before deciding the section and rate.
In practical terms, many “business support services” are often examined as either:
* contractual support services → 1% / 2%, or
* managerial / consultancy / technical support → 2% or 10%, depending on exact character.
In practical terms, many “business support services” are often examined as either:
* contractual support services → 1% / 2%, or
* managerial / consultancy / technical support → 2% or 10%, depending on exact character.
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