What are technical services under 194J?
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) but does not include consideration for any construction, assembly, mining or like project undertaken by the …
Which are technical services?
Technical services are services that an IT organization provides to support business services or IT operations. Employee provisioning, backup and recovery, storage, and self-service help desk are examples of technical services.
What are technical services as per Income Tax Act?
What constitutes FTS as per the I-T Act, 1961? Fees for Technical Services (FTS) have been defined in Section 9 itself under clause (vii) as any consideration (including lump sum) for rendering of any managerial, technical or professional services including the services of technical or other personnel.
What’s the meaning of technical services?
As per the concise oxford dictionary, the term ‘technical services’ means belonging or relating to art, science, profession or occupation involving mechanical arts and applied sciences.
What is the difference between professional services and technical services?
Professional services – Services of doctors, chartered accountants, tax consultancy services, project monitoring services etc. Technical services – Computer development software, Bio technical services, geological and scientific services etc.
What is the difference between 194J A and 194J B?
u/s 194J(a) of the Income Tax Act, is related to TDS deduction on fees for Technical Services, and u/s 194J(b) of the Income Tax Act is related to TDS deduction on fees for Professional Services.
What is 194J A and 194J B?
(i) Section 194J(A) of the Income Tax Act is related to TDS deduction on any sum paying as fees for Technical Services. (ii) Section 194J(B) of the Income Tax Act is related to TDS deduction on any sum paying as fees for Professional Services. 4. Distribution or exhibition of cinematographic films.
What is 194J A & 194J B?
What is 194J A and B?
How do you distinguish between technical services and professional services?
What is difference between 194I and 194IB?
Section 194IB: TDS on Payment of Rent by Individuals/HUFs We read above about Section 194I which only allows the Individuals / HUFs to pay the TDS who are audited under section 44AB.
What is 194JA & 194JB?
As per the utility of e-TDS provided, section code 194JA is assigned to denote deduction of tax under section 194J @ 2% whereas section code 194JB is assigned to denote deduction of tax under section 194J @ 10%.
What does technical services mean under section 194j?
As per Explanation (b) to Section 194J, the term ‘fees for technical services’ shall have the same meaning as in Explanation 2 to clause (vi) of sub section (1) of section 9. According to this explanation, the term ‘fees for technical services’ means fees for rendering of any of the following services: –
How much TDS can be deducted under section 194j?
TDS will be deducted under Section 194J at rate 2% in case of fees for technical services (not being professional services) and rate reach up to 10% of such sum in any other case.
What is TDs on fees for professional or technical services?
The present article features the TDS provisions contained under section 194J of the Income Tax Act, 1961 relating to the TDS deduction on fees for professional or technical services. Every person, except an individual or a HUF, making payment to a resident for notified services is covered under section 194J of the Income Tax Act.
What is section 194j of the Income Tax Act 1961?
TDS Section 194J of the Income Tax Act 1961 includes provisions regarding the TDS deduction of fees for technical as well as professional services. We prepared this article to keep you up to date about the changes and to provide a complete overview of Section 194J under TDS.