Definition - professional services - tds applicability, Income Tax

[Jatinder Maan]

please define the professional services and contract services and tds rate applicable on the same

Posts / Replies

[DEV KUMAR KOTHARI]

Dear Friends, This is discussion forum and not column like "your queries". To effectively use the discussion forum I suggest that the querist should send his own material, analysis and view on the subject of query with reference to provisions and case laws. Some efforts should be amde by the author of the issue.

[Dinesh Gupta]

For the purpose of meaning of contract services - you may refer to (iii) and (iv) of the Explanation to Section 194C and for the purpose of professional services refer to (a) and (b) of the Explanation to Section 194J. Further, the rate of TDS for contract service is 2% and in case of sub contract it is 1%. On the other hand rate of TDS on professional services is 10% [plus cess]