77[Fees for professional or technical services.78
79194J. (1) Any person, not being an individual or a Hindu undivided family,
who is responsible for paying to a resident any sum by way of—
(a) fees for professional services, or
(b) fees for technical services, 80[or]
80[(c) royalty,
or
(d) any sum referred to in clause (va) of section 28,]
shall, at the time of credit of such sum to
the account of the payee or at the time of payment thereof in cash or by issue
of a cheque or draft or by any other mode, whichever is earlier, deduct an
amount equal to 81[ten] per cent of such sum as income-tax on income comprised therein :
Provided that no deduction shall be made under this section—
(A) from any sums as aforesaid credited or paid
before the 1st day of July, 1995; or
(B) where the amount of such sum or, as the case
may be, the aggregate of the amounts of such sums credited or paid or likely to
be credited or paid during the financial year by the aforesaid person to the
account of, or to, the payee, does not exceed—
(i) 82[thirty thousand rupees], in the case of fees
for professional services referred to in clause (a), or
(ii) 82[thirty thousand rupees], in the case of fees
for technical services referred to in 82a[clause (b), or]
83[(iii) 82[thirty thousand rupees], in the case of
royalty referred to in clause (c), or
(iv) 82[thirty thousand rupees], in the case of sum
referred to in clause (d) :]
84[Provided further that an individual or a Hindu undivided family,
whose total sales, gross receipts or turnover from the business or profession
carried on by him exceed the monetary limits specified under clause (a)
or clause (b) of section 44AB during the
financial year immediately preceding the financial year in which such sum by
way of fees for professional services or technical services is credited or
paid, shall be liable to deduct income-tax under this section :]
85[Provided also that no individual or a Hindu
undivided family referred to in the second proviso shall be liable to deduct
income-tax on the sum by way of fees for professional services in case such sum
is credited or paid exclusively for personal purposes of such individual or any
member of Hindu undivided family.]
(2) 86[***]
(3) 86[***]
Explanation.—For the purposes of this section,—
(a) “professional services” means services
rendered by a person in the course of carrying on legal, medical, engineering
or architectural profession or the profession of accountancy or technical
consultancy or interior decoration or advertising or such other profession as
is notified87 by the Board for the purposes of section 44AA
or of this section;
(b) “fees for technical services” shall have the
same meaning as in Explanation 2 to clause (vii) of sub-section
(1) of section 9;
88[(ba) “royalty”
shall have the same meaning as in Explanation 2 to clause (vi) of
sub-section (1) of section 9;]
(c) where any sum referred to in sub-section (1)
is credited to any account, whether called “suspense account” or by any other
name, in the books of account of the person liable to pay such sum, such
crediting shall be deemed to be credit of such sum to the account of the payee
and the provisions of this section shall apply accordingly.