tds on accounting data netry

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Samir (Querist)
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03 March 2009 what if the ca firm raise a bill on client for providing data entry charges by sending his staff at the client end.The work relates doing accounting data entry.Will it still be deducted under contract or professional?

CA.MANOJ LAMBA

CA.MANOJ LAMBA (Expert)
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03 March 2009 if a chartered accountant is providing accounting services, then it is covered u/s 194j professional services. rate of 10% tds is applicable in this case.
thnaks

Samir

Samir (Querist)
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03 March 2009 what is the srvice is not provided by chartered accountant by any other person but nature of work remains same

Aashok Kumar Sharma

Aashok Kumar Sharma

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27 July 2025 Great follow-up! Here's how TDS applies on **accounting data entry services** when provided by non-CA firms or individuals:

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### Nature of service:

* **Accounting data entry** is basically **clerical or support work** related to maintaining accounts.
* It **does not involve professional skill or expertise** like that of a CA.

### Which TDS section applies?

1. **If service is by a CA firm or a CA individual**

* It is considered **professional services** — TDS under **Section 194J** (Rate: 10%) applies.

2. **If service is provided by a non-CA person or firm for data entry**

* It is generally treated as **contractual services** (like outsourcing or manpower supply).
* Hence, TDS would be under **Section 194C** (Contractor payments) — usually at **1% or 2%** depending on the payee.

### Summary:

| Service Provider | Nature of Service | TDS Section | Rate |
| ------------------------- | --------------------- | ----------- | ------- |
| CA or CA firm | Professional services | 194J | 10% |
| Non-CA individual/company | Data entry/clerical | 194C | 1% / 2% |

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**So if the service provider is NOT a CA or CA firm, TDS on accounting data entry service would be under Section 194C as contract payment.**

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