TDS ON ROAD SIDE ASSISTANCE

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This discussion clarifies the applicability of Tax Deducted at Source (TDS) on roadside assistance services provided by third parties to bike and car dealers. Section 194J of the Income Tax Act, which covers fees for technical services at a 2% rate, is identified as the relevant provision. Technical services are defined broadly to include expertise in technology, managerial functions, and consultancy.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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31 January 2023 WHAT PROVISION OF TDS IS APPLICABLE IN CASE ROAD SIDE ASSISTANCE PROVIDED BY THIRD PARTY TO DEALER OF BIKES AND CARS.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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31 January 2023 Under sec. 194Ja of the act, at 2% rate for ‘fees for technical services.’

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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31 January 2023 SIR CAN YOU EXPLAIN MORE

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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31 January 2023 As per income tax rules, ‘fees for technical services’ means managerial, technical, and consultancy services by the recipient of such income.
One can define technical services as providing services that involve technical expertise or expertise in technology.
The scope of managerial services can be defined as running and management of the business of the client.
Consultancy services can be understood as advisory services wherein necessary advice and consultation are given to the clients for their business.

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