TDS Section 393(1) table s.no.6 (iii) of the Income Tax Act 2025 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 this Section under TDS. Here you will also find information on applicability, TDS rates, etc.
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TDS will be deducted at the rate of 2% on fees for
- Royalty like consideration for sale,
- Distribution or exhibition of cinematographic films
- Technical services (not being professional services)
- Payee, engaged only in the business of operation of call centre and
- 10% in any other case
An individual or HUF having a total sales, gross receipts or turnover from the business or profession carried on by him exceeding 1 crore rupees in case of business or Rs 50 lacs in case of the profession during the Financial year immediately preceding the FY in which such amount is credited or paid, shall be liable to deduct TDS.
Who is Liable to Deduct TDS U/S 393(1) Table S.No.6 (iii)?
Everyone except an Individual/HUF who is liable to make the following payments to any resident is liable to deduct TDS under this section.
- Fees for professional services and for technical services or
- Any remuneration/ fees/ commission, whatever name is called, to a director of a company, other than the payment on which tax is deductible for salary, or Royalty, or
- Non-compete fees
An individual or HUF is liable to deduct TDS under section 393(1) Table S.No.6 (iii) only where turnover exceeds one crore rupees in the case of a Business and fifty lakh rupees in the case of a profession.
Meaning of Professional Services Under Section 393
- Professional Services are defined under Section 393 includes
- Medical
- Legal
- Engineering
- Architectural profession
- Accountancy
- Technical consultancy, or
- Interior decoration
- The profession of Company Secretary
- The profession of film artist
- The profession of the authorized representative
- Anchors
- Commentators
- Event Managers
- Physiotherapists
- Referees and Umpires
- Sports Persons
- Sports Columnists
- Trainers and Coaches
Meaning of Fees for Technical Services U/S 393 Given in Section 9 of the IT Act 2025
Payment for the following services comes under the fees for technical services under section 393 for the rendering of any:
- Technical services
- Managerial services
- Consultancy Services
- Provision of services of technical or other personnel
But does not include the following consideration:-
- For any construction, assembly, mining or similar project undertaken by the recipient; or
- Which would be the income of the recipient chargeable under the head
“Salaries”.
Rate of TDS Deduction Under Section 393(1) Table S.No.6 (iii)
The rates of TDS deduction under TDS Section 393(1) Table S.No.6 (iii) are given below in the table:
| Category | Rate |
|---|---|
| If the Payee is engaged only in the business of operating the call centre | 2% |
| If payment is made for royalties for the sale, distribution, or screening of a film | 2% |
| If payment is made for technical service (not being a professional services) | 2% |
| A payee involved in any other business operation or profession comes under the scope of 393(1) table s.no.6 (iii) | 10% |
| If PAN is not furnished by the payee | 20% |
Time of TDS Deduction Under Section 393(1) Table S.No.6 (iii)
Tax Deducted at Source (TDS) under Section 393(1) table s.no.6 (iii) of the Income Tax will be deducted at the time of:
- The credit of the amount to the payee’s account
- Payment of such amount to the payee in cash/ cheque/ draft, or any other medium, whichever is earlier
It is to be noted that the term credit here has an interesting meaning where such an amount is transferred to the Payee’s account (called suspense account or any other name) in the books of account of the person liable to make such payment, shall be deemed to have been credited to the payee’s account, and TDS shall be deducted accordingly.
Threshold to Deduct TDS Under Section 393(1) Table S.No.6 (iii)
| Category | Threshold Limit |
|---|---|
| Fees for professional services | 50000 |
| Fees for technical services | 50000 |
| Royalty | 50000 |
| Non-compete fees | 50000 |
| Remuneration/ commission/fees payable to a director of a company | No such limit |
We would like to mention here that the limit is applied and varies for each of the above services in this section, TDS (Tax Deducted at Source). To understand it better, we can take an example that if the payment amount to a person towards each of the above categories is less than Rs 50000 but exceeds Rs 50000 in aggregate, then TDS is not required to be deducted.
Conditions for Non-Applicability of TDS Section 393(1) Table S.No.6 (iii)
There are some cases where TDS Section 393(1) Table S.No.6 (iii) is not applicable, listed below:
- If the payment is made by an individual or HUF. But if the individual/ HUF has a turnover exceeding Rs 1 crore in case of business and Rs 50 Lakhs in case of profession, then the payment is liable to deduct TDS following Section 393(1) Table S.No.6 (iii)
- Further, an individual/HUF is not liable to pay TDS under section 393 Table 6 (iii) if the payment is made or credited exclusively for personal purposes.
Recommended: How New Income Tax Rules Will Affect the TDS You Pay on Services
General Queries on Section 393(1) Table S.No.6 (iii) Under TDS
Q.1 – Who will deduct TDS for services listed under Section 393(1) Table S.No.6 (iii)?
The Tax Deducted at Source or TDS liabilities arising from services under Section 393(1) Table S.No.6 (iii) for professional technical experts or consultants will be paid by the payer at the time of making payment for the respective services used. For example, if the payer has hired an engineer to avail his services, then, the payer is required to make the respective payments after deducting the TDS liability arising from it.
Q.2 – Should I deduct TDS if the consultancy services of a professional are availed for the personal use of payer before paying his fees?
No, the taxpayer is not obliged to deduct TDS for the services availed for personal use
Q.3 – Are there any tax exemptions for TDS under Section 393(1) Table S.No.6 (iii)?
The exemption under Section 393(1) Table S.No.6 (iii) can be availed by a payer if he pays the tax according to the TDS rate, regardless of the total amount payable. The maximum exemptions under such cases id INR 50,000
Q.4 – I do not have the PAN details of the payee. Should I still deduct TDS u/s 393(1) Table S.No.6 (iii)?
Absolutely. Moreover, you should do that without any hesitation as the rate of TDS for those individuals who have submitted their PAN is 10% but for those who have not, it is 20%. You should ask the professional to give the PAN details and if he refuses to do so just deduct the TDS at the rate of 20%
Q.5 – Will I be penalized for not paying TDS to the government?
Yes, after the collection of required TDS, the payer is required to submit the respective TDS to the government. If he fails to do so, he will have to face the consequences. The interest at the rate of 1.5% is applicable per month from the date of collection to the date of payment
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