Section 194j

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 March 2017 Dear Experts,
Pls tell me weather TDS rate sec 194J has been reduced from 10% to 2% if so? From which date,

Regds
Kailash

CA S K MISHRA

CA S K MISHRA (Expert)
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01 March 2017 Finance Bill 2017 w.e.f 01.06.2017 reduced 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.

Section 194J of the Income-tax Act provides for deduction of tax at source on fees for professional or technical services.

The existing provisions of sub-section (1) of section 194J of the Act, inter-alia provides that a a person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of fees for professional or technical services or other services mentioned therein 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, Finance Bill 2016 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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CA Chandan Sharma

CA Chandan Sharma (Expert)
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01 March 2017 Section 194J
Rate reduced from 10% to 2%-ONLY in case of payment received or credit to payee being a person ONLY in the business of operation of call centre.

In other case the rate is still 10%

Applicable from 1 June 2017.

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