Blog > Tax Deducted At Source (TDS) u/s 194J

Tax Deducted At Source (TDS) u/s 194J

by Varun Advani | 27 June 2015


The provisions of section 194J are given below



Who is the payer


Any person (not being an individual /HUF) who pays/Credits fees for professional /technical service/royalty, is responsible for tax deduction.

However, an individual /HUF is responsible for tax deduction only if book of account of the payer is subject to audit under section 44ABin immediately preceding year an payment /credit is of professional fees (not personal purposes) or technical fees



Who is recipient

A resident person

Payment covered

Fees for professional /technical services /royalty /director ’s fees

At what time tax has to be deducted at source

At the time of payment or at time of credit, whichever is earlier

Maximum amount which can be without tax deduction

If the amount of professional fees during a financial year is Rs.30,000 or less than Rs.30.000 or less. Future if the amount of royalty during a financial year is Rs.30,000 or less. No threshold limit for director fees.

Rate of tax deduction at source

10%(no surcharge and education cess, etc.) Tax is deductible on total payment (including service tax). Reimbursement of actual expenditure cannot be deducted out the bill amount in the case of a consolidated bill.

When the provisions are not applicable


Is it possible to get the payment without tax deduction or with lower tax deduction

The recipient can make application in Form No.13.


Meaning of professional /technical services –The expression ‘‘professional services’’ has been defined to mean services rendered by a person of carrying on legal, medical, engineering or architectural professional or the professional of accountancy or technical consultancy or interior decoration or advertising (i.e., models, artists, photographers providing services to an advertising agency) or such other profession as is notified by the board for the purpose of section 44AA [i.e., authorized reprehensive, film artist  or company secretary or information technology ]or of this section.

The expression ‘‘fees for technical services’’ mean any consideration for rendering any managerial, technical or consultancy services. It does not include (a) consideration for any construction, assembly, mining or projects, (b) consideration for any service provided by machines or robots, and (c) salary payment.


Amount paid by non –resident –Any fees paid through regular baking channels to any chartered account, lawyer, advocate or solicitor who is resident in India by the non –resident who do not any agent or business connection or permanent establishment in India may not be subject to the provisions of tax deduction at source under section 194J-


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