TL;DR for CAs
- 194J covers professional and technical services.
- Fee for technical services vs royalty classification matters.
- Threshold and rate updates should be checked yearly.
What it is
Section 194J requires TDS on fees for professional or technical services and certain other payments.
Who it applies to
Persons responsible for paying professional/technical fees above threshold.
Key provisions
- Rate structure including concessional rates where notified
- Threshold for deduction
- Distinction from 194C job work
Practical tips for CAs
Review vendor contracts for mixed supply of labour vs professional advice.
Common mistakes
Using 194C for retainerships; missing threshold aggregation.
For general guidance only. Verify with the latest Finance Act, GST notifications, and ICAI guidance notes before advising clients.