This discussion clarifies the Tax Deducted at Source (TDS) applicable to technical testing services. It confirms that TDS is generally deducted under Section 194J. The standard TDS rate for fees for technical services, provided they are not professional services, is 2%. However, the rate can increase to 10% in other specified circumstances.
21 January 2024
TDS will be deducted under Section 194JA at rate 2% in case of fees for technical services (not being professional services) and rate reach up to 10% of such sum in any other case.