TDS rate on Employement Agency and Rating agency

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

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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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)
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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)
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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.

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