section

Any person (other than individual or huf who is not liable to audit under section 44AB) who is responsible for paying to a resident

Fees for professional servicesFees for technical servicesRoyaltyAny remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192 to a director of a companyNon Compete fees as referred under section 28(va)

It is to be noted that if professional or technical services is provide by an employee to his employer then such amount is not covered under Section 194J but covered under section 192 i.e TDS on salary.

Rate of TDS

TDS is to be deducted under this section at the rate of 10%. If the recipient of income doesn’t furnish his PAN to deductor then TDS is to be deducted @ 20%. No surcharge, education cess or SHEC shall be added to the mentioned rates. Also TDS is to be deducted on fees excluding the GST component.

From 1st June 2017 TDS is to be deducted at the rate of 2% where the payee is engaged only in business of operation ofcall centre.

Tax is to be deducted at the time of credit of such income to the account of the payee or at the time of payment whichever is earlier.