Can we deduct TDS on royalty?

However, No TDS is to be deducted if annual amount is upto 30000 per annum. If Amount is 30001 then TDS is deducted….Section 194J TDS on Professional Technical Royalty Services.

Is TDS applicable on professional fees?

Hence, no TDS is required to be deducted while making payments for such services. If Tax Audit is applicable to Mr. Jay and he avails the professional services for business purpose, then TDS @10\% must be deducted at Rs. 55,000 while making payment or credit in the accounts, whichever is earlier. .

When should we deduct TDS on professional fees?

The tax should be deducted at the time of passing such entry in the accounts or making the actual payment of the expense, whichever earlier. According to Section 197, the person receiving payment can apply for a reduction of rate in TDS, through filling in the Form 13 and sending it to the assessing officer.

What are technical services under TDS?

“Fees for technical services” means any consideration (including any lump sum 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 …

How can I pay TDS for professional fees online?

Following is the procedure that a deductor needs to follow:

1. Login TIN NSDL Portal. To pay TDS online visit the website of income tax department.
2. Select the Relevant Challan.
3. Fill in the Challan Details.
4. Confirm Challan Details.
5. Make TDS Payment.
6. Online Verification.

How do you distinguish between professional and technical services?

1. Professional Services. It implies the services carried out by an individual in the medical, architectural, legal, medical or engineering profession.
2. Technical Services. It implies the services rendered by an individual for consultancy, technical or managerial services.
3. Non Compete Fees.
4. Royalty.
5. Specific Cases.

What do you mean by 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.

How do I claim professional tax deductions?

If you are filing an ITR as a professional or for your company then based on the ITR Form you are filling, you will have to declare your gross income. Then based on all other parameters such as rent, investments, etc., you will also quote the professional tax liability for the year.

Is it mandatory to deduct professional tax?

It is a source of revenue for the government. It is deducted by the employer from their employee every month and remitted to state exchequer and in some states sent to the Municipal Corporation. It is mandatory to pay professional tax.