Any one expert can say what is TDS applicability on Other Support Services particular this SAC code- 998599.
Please suggest TDS applicable yes or not with explanation as well as section and rate
TDS ON OTHER SUPPORT SERVICE SAC CODE 998599
Replies (2)
Quick Summary
Depends on nature of support service ie if related to brokerage then deduct in 194H, related to Professional services then 194j if not then check pertaining to some contract.
The SAC code does not decide TDS; the nature of the service does.
• Work done to specification (manpower support, facility, back-office, event or logistics support): Sec 194C at 1%/2%. Threshold Rs 30,000 per bill or Rs 1 lakh a year.
• Technical services (call-centre operations, technical support, engineering support): Sec 194J(a) at 2%.
• Professional or managerial services: Sec 194J(b) at 10%. From 1 April 2025, the threshold for both 194J limbs is Rs 50,000 a year, each.
• Commission or brokerage: Sec 194H at 2% (from 1 October 2024; earlier 5%). Threshold Rs 20,000 (from 1 April 2025).
• From 1 April 2026: Sec 393 of the Income-tax Act, 2025, with the same rates.
• Deduct on the value excluding GST if GST is shown separately (CBDT Circular 23/2017).
• If the payee has no PAN, TDS is at 20% (Sec 206AA).
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