Technical Consultancy u/s 44AA(1)

In accordance to section 9 of the Income Tax Act, 1961 ("the Act"), Fees for Technical Services (FTS) is defined as any consideration for the rendering of any managerial, technical or consultancy services" including the provision of services of technical or other personnel.

Dictionary meaning of the same comes to:

Managerial: Services relating to a manager or to the functions, responsibilities, or position of management. 

Technical: Services relating to, or involving the practical, mechanical, or industrial arts or the applied sciences. 

Consultancy: the act of offering expert or professional advice in a field.

 

Thank you sir for providing such detailed insight. So can an MBA providing Marketing related consultancy services be covered u/s 44AA(1) and thus disclose income u/s 44ADA? 

 

Yes. Generally under business codes... 16012, 16013, etc.

Can a person having qualification in post-graduate corporate communication and Public Relation(PR) and currently rendering consultancy on PR and marketing  disclose income u/s 44ADA & under the code 16013: "Business and management consultancy activities" 

Divergent views ... supporting their stakes with different sections......

ICAI has already raised some queries on similar issues, but CBDT has not clarified till date ....

Finally, it has been well known fact that:  TDS is deducted over the activities under Sec 194J, which is reserved for professional activities and technical services, thereby these activities gets assessed under sec. 44ADA, who so ever carries it, be he himself qualified or gets it done through others.

Yes, I agree with your view. Thank you for your clarification.