VR4U
153 Points
Joined October 2021
There are two possible things you might be thinking of:
A. TDS on Income Tax (under the Income Tax Act, 1961)
If your payer is deducting TDS while making payment to your vendor for managed network services, then:
Applicable Section:
For IT/technical services → Section 194J of Income Tax Act
Applicable TDS Rate:
There is no link to SAC codes here.
So if it is IT/Technical/Professional service, 10% TDS under 194J is correct.
Exception: If it is purely business support services with no technical element, some people incorrectly apply 2% under 194C, but the correct is 194J for IT/related services.