Income Tax

TDS Rate us 194J reduced to 2 percent for call centre. Being payment to a person engaged only in the business of operation of call center

TDS Rate us 194J reduced to 2 percent for call centre. Being payment to a person engaged only in the business of operation of call center

Budget 2017-18 : Simplification of tax deduction at source in case Fees for professional or technical services under section 194J

The existing provisions of sub-section (1) of section 194J of the Act, inter-alia provides that a specified person is required to deduct an amount equal to ten per cent. of any sum payable or paid ( whichever is earlier) to a resident by way of fees for professional services or fees for technical services provided such sum paid/payable or aggregate of sum paid/payable exceeds thirty thousand rupees to a person in a financial year.

In order to promote ease of doing business, it is proposed to amend section 194J to reduce the rate of deduction of tax at source to two per cent. from ten per cent. in case of payments received or credited to a payee, being a person engaged only in the business of operation of call center.

This amendment will take effect from the 1st day of June, 2017

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