Technical Fees 194J -2%

Technical Services means the consideration paid for managerial,technical service by use of skill, knowledge. Therefore using a tally software is in the nature of technical service and also receiving I.T related services is covered under technical services.Since in both of the case we uses technology not a professional specific service.So in my opinion TDS @ 2% will be deducted.

Hi Ms. Tejaswinee,

What is the technical services?

It means consideration for the rendering of any managerial, technical (like engineering and which involve skills) or consultancy services.

Based on the query, You can go with the invoice, if on the invoice the word technical fees is mentioned then TDS will be deducted as per section 194J.

Whereas, as per section 194C mainly emphasis on carrying out any work( like advt, broadcasting, etc) or supply of labour.

 

Mr. Vivek thankyou for your reply but, my query is considering FY 20-21 tds rates.. Where technical fees are part of 194J @ 2%.

Thankyou Garima, i am on the same page as you, can you help me out with any article elaborating technical fees... 

Under section 194J, Professional services are services provided by a person in course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or interior decoration or technical consultancy or advertising or such profession as is notified by the Board for the purpose of section 44AA.

Fees for Technical Services means fees paid for rendering any managerial, technical or consultancy services.

When to deduct TDS under section 194J?

TDS shall be deducted at the time of:

1. Crediting the sum to payee account or
2. Actual payment of cash or
3. Payment made via cheque, draft or via any other source, whichever is earlier.