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Ramesh Sharma
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Enlightened
Asked: 2024-07-23T14:47:30+05:30 In:

Is TDs deductible on Certification charges?

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Is TDs deductible on Certification charges?
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    1. Enlightened
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      TDS shall be deducted under section 194J@10% if the payment exceeds the threshold limit i.e. INR 30000 on certification charges like ISO, Great Place of Work, Best Coach, etc. Here is the detailed analysis of sec 194 J   TDS under section 194J is deducted on payments exceeding the threshold limRead more

      TDS shall be deducted under section 194J@10% if the payment exceeds the threshold limit i.e. INR 30000 on certification charges like ISO, Great Place of Work, Best Coach, etc.

      Here is the detailed analysis of sec 194 J

       

      TDS under section 194J is deducted on payments exceeding the threshold limit for below payments.

      Type of Payments Rate of tax deduction Threshold Limit
      Technical service 2% Rs. 30,000
      Payment of royalty for sale, distribution or exhibition of cinematographic films. 2% Rs. 30,000
      Other Royalty 10% Rs. 30,000
      Professional Services 10% Rs. 30,000
      Non-compete fees or fees paid not to share any technical knowledge or know-how 10% Rs. 30,000
      Payments made by the company to directors by way of fees, commissions or remuneration 10% Nil

       

      Professional services include following services:

      • Legal
      • Medical
      • Engineering
      • Architectural
      • Accountancy
      • Technical consultancy
      • Interior decoration
      • Advertising
      • Film artist
      • Company secretary
      • Authorised representatives
      • Profession of information technology
      • Sportspersons
      • Commentators
      • Event managers
      • Anchors
      • Umpires and referees
      • Physiotherapists
      • Coaches and trainers, team physicians, and sports columnists

       

      Fees for technical services include the following payments:

       

      • Services that involve technical expertise or expertise in technology.
      • Managerial services and management of the client’s business.
      • Consultancy services and business advisory services.

      Note: Technical service does not include services provided by machines or robots.

      Royalty means the payment made for:

      • Transfer of rights or usage of an invention, model, design, trademark, patent, etc.
      • Use of patents, inventions, designs, etc.
      • Provide any information related to using an invention, patent, formula, etc.
      • Transfer of rights related to scientific findings, literary work, films or videotapes for radio broadcasting but does not include consideration for the sale, exhibition, or distribution of cinematographic films.
      • Providing any information related to technical, industrial, commercial or scientific knowledge, experience or skill

       

      Non-compete fees include the payment made for an agreement for not sharing any license, patent, trademark, franchise, know-how, commercial or business rights, or information to any other person for processing, manufacture, or provisional service.

      Thanks

       

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