Can a Private Ltd Company give Technical services to other company

Please explain me that can a Private Ltd Company can give Professional or Technical services to other Private Ltd Company or any other person. If yes than under which section TDS will be deducted.
Replies (2)
Quick Summary
Yes, a Private Ltd Company is fully permitted to provide professional or technical services to other companies or individuals. When such services are rendered, Tax Deducted at Source (TDS) must be applied. Specifically, Section 194J of the Income Tax Act, 1961, governs TDS on fees for professional or technical services, with a standard deduction rate of 10%. It's crucial to ensure timely deposit of deducted TDS and accurate filing of returns to avoid penalties.

2% tds under sec 194j for not being professional service and a threshold limit of rs. 30000

.Yes, a private limited company can provide professional or technical services to another private limited company or any other person. The TDS (Tax Deducted at Source) on such payments will be deducted under Section 194J of the Income Tax Act, 1961.

Section 194J deals with the deduction of TDS on fees for professional or technical services. As per the section, any person who is responsible for making payment of any fees for professional or technical services to a resident is required to deduct TDS at the rate of 10% (excluding surcharge and cess) at the time of credit of such sum to the account of the payee or at the time of payment, whichever is earlier.

It is important to note that the TDS deducted must be deposited to the government treasury on a timely basis and the TDS return must be filed within the due date. Failure to do so can result in penalties and interest.

To know more finance-related content visit Swipe blogs

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details
Company
17 August 2026
Chartered Accountant with US GAAP Experience

Austin Med Solutions Pvt Ltd

Bengaluru

CA

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
Featured 19 August 2026
Chartered Accountant

apricus india

Pune

CA

View Details
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details