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

Share

Recent Posts

  • Income Tax

Date of digital signature and issue determines date of a notice u/s 148 of Income Tax Act

Date of digital signature and issuance determines the date of a notice u/s148 of the Income Tax Act - ITAT…

2 days ago
  • DGFT

DGFT authorises IACCIA to issue Certificate of Origin (Non- Preferential)

DGFT authorises IACCIA to issue Certificate of Origin (Non- Preferential) w.e.f. 9th January 2026 In exercise of powers conferred under…

2 days ago
  • Income Tax

Net profit rate may not have variation commensurate to increase of turnover

Net profit rate may not per se experience variation commensurate to the increase of turnover. In a recent judgment, Allahabad…

2 days ago
  • Excise/Custom

Mushroom growing apparatus cannot be classified as ‘agricultural machinery’

Mushroom growing apparatus cannot be classified as ‘agricultural machinery’ under Customs Tariff Heading 8436. In a recent judgment, Hon'ble Supreme…

2 days ago
  • negotiable instrument act

Statutory presumption attached to issuance of a cheque to be accorded due weight – SC

Statutory presumption attached to issuance of a cheque, being one made in discharge of a legally enforceable debt or liability,…

3 days ago
  • tender

Highest bid can’t be discarded on mere expectation of even more higher bid

Merely because the authority conducting auction expects higher bid than the highest bidder is no reason to discard the highest…

3 days ago