Why rate of TDS is decreased to 2% in case of Technical services in 194J? It will welcome some more litigations or not because for some services difference will not be clear whether it is professional/technical?
Replies (3)
Quick Summary
This discussion explores the recent reduction in the Tax Deducted at Source (TDS) rate for technical services under Section 194J to 2%. Participants are questioning the clarity of differentiating technical services from professional services, which could lead to further legal disputes. The threshold limit of INR 30,000 for payments under Section 194J is also mentioned, with an exception for director remuneration.
Yes, I agree with you, how can we differentiate professional and technical services, I read govt article and one technical service I understand that is labour contractor.
As per Section 194J, each item or independent payment has a threshold maximum limit of INR 30,000. TDS under this section also applies for the fees or remuneration paid to the company's director even if the payment is not part of the main salary. In such cases, the INR 30,000 limit does not apply here.
Leave a Reply
Your are not logged in . Please login to post replies