Sir,
We are providing data processing and tele calling services to a MNC Bank under a written contract. Last year, they deducted TDS on our bills @ 2% plus s/c. This year, they have resorted to deduct TDS @ 10% plus s/c. When asked to furnish reasons for the higher rate of TDS, we were informed that we are providing professional/technical services and hence the TDS @ 10%. Is this correct?
Only the services rendered by 'professionals' and the fee charged by technical professionals/companies for providing 'technical services' attract the higher rate of TDS.
Are we correct?
We shall be grateful for advice.
S. Krishnamoorthy
The facts point out you are rendering services under consultancy, hence the deduction @ 10%
