TDS u/s 194C or 194J??

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This query is : Resolved

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This discussion seeks clarification on whether Tax Deducted at Source (TDS) for payments made towards mobile and web application development falls under Section 194C or 194J of the Income Tax Act. The consensus among experts is that TDS should be deducted under Section 194J as professional fees, with a rate of 10%.

CA Ashika Parveen

CA Ashika Parveen (Querist)
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18 May 2021 Dear Experts,
I need clarification for deduction of TDS for payment to be made for development of mobile application as well as web application charges. The company has entered into a contract with web development company for application development and the payments will me made in installments depending on percentage of completion of the application development. My doubt is whether TDS to be deducted u/s 194C or 194J? In case if it is 194J whether 10% for Professional charges or 2% for Technical fees? Please clarify