Section 194 J Technical Service/Professional Service Difference

The key difference is the TDS rate: technical services attract 2% while professional services attract 10% (both now under Section 393 of the Income Tax Act 2025, effective April 1, 2026). A technical service is standardised knowledge provided via a set process (software maintenance, engineering testing, or managed IT support). A professional service requires individual expertise and judgment, such as CA fees, legal advice, or medical consulting. For worked examples showing how to classify contractor payments, professional fees, commission, and e-commerce payments across the new section 393 categories, see this [guide on which TDS section applies to your payment](https://taxgarden.in/blog/which-tds-section-applies-to-your-payment-194c-vs-194j-vs-194q-vs-194h).