TDS rate on Employement Agency and Rating agency

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the TDS rates applicable to payments made to employment agencies and rating agencies. For employment agencies, a 2% TDS is generally deducted under Section 194C, treating the service as contractual or advertising. For rating agencies like CRISIL, the TDS rate can vary; typically 2% under Section 194J for technical services, but potentially 10% under Section 194J if the service is considered professional or consultancy-based, especially if payments exceed Rs 30,000 annually.

Daya

Daya (Querist)

06 January 2025 what is TDS rate on employment news and Rating agency Like Crisil.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

06 January 2025 For employment news 2% TDS under section 194c applicable.
For rating agency 2% TDS applicable under 194JA.

Sowmya.G

Sowmya.G (Expert)

08 January 2025 CRISIL's service cannot be categorically defined under technical services. It is best to adopt 194JB @ 10% if payment/credit exceeds Rs 30,000 in a year.

CA Rakesh

CA Rakesh (Expert)

02 December 2025 TDS on payments to an employment-news agency is generally deducted at 2% under Section 194C because it is treated as a contractual/advertising service. For rating agencies like CRISIL, the TDS rate depends on the nature of service; most companies deduct 2% under Section 194J (technical services), while some apply 10% under Section 194J (professional services) if the service is considered consultancy or professional in nature. The exact rate depends on the specific contract and type of service provided.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now