In the budget 2020, their are two rates of tax under section 194j , 2% for technical service and 10% for professional service . In my Q 1 ,I had deducted some under 2% and filed return but demand has been raised for short deduction.
please advise
4 Replies
Rajarajan. K.S
(Employee)
(44 Points)
Replied 04 August 2020
Sir, 2% is applicable in case of call centre.. Rest all is 10%(now 7.5%)
Anoop srivastava
(223 Points)
Replied 04 August 2020
The Deductor is required to deduct TDS at the following prescribed rates under section 194J of the Income Tax Act, 1961 –
Particulars Rate of TDS
Cases, wherein, the payee is engaged in the business of the operation of Call Centre only (effective from 1st June 2017) 2%
In case of fees for technical services (not being a professional royalty where such royalty is in the nature of consideration for sale, distribution or exhibition of cinematographic film) (effective from 1st April 2020)2%
Professional royalty where such royalty is in the nature of consideration for sale, distribution or exhibition of cinematographic film10%
In case of fees for any other professional services10%
sir, please see 2nd para above. for scientific and technical service other than royalty it is written as 2%
Particulars Rate of TDS
Cases, wherein, the payee is engaged in the business of the operation of Call Centre only (effective from 1st June 2017) 2%
In case of fees for technical services (not being a professional royalty where such royalty is in the nature of consideration for sale, distribution or exhibition of cinematographic film) (effective from 1st April 2020)2%
Professional royalty where such royalty is in the nature of consideration for sale, distribution or exhibition of cinematographic film10%
In case of fees for any other professional services10%
sir, please see 2nd para above. for scientific and technical service other than royalty it is written as 2%
Krishna Chaudhary
(Accountant)
(4531 Points)
Replied 23 January 2021
For call centre rate of 2% will be applicable
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 24 January 2021
It depends on nature of payment which rate is applicable
Recent Topics
- Applicability of 44AD needs clarification
- ITC reversal in GST 3B
- Claim if ITC on stocks 19-2020 conversion from com
- Urgent doubt on GST
- Profit or Loss on Sale of Assets Accounting treatm
- Clarification on RCM on Rent Payment for QRMP Deal
- Reclaimed itc in gstr9
- Gamification in Accounting Software: Boosting Enga
- I want to knw Hsn code and gst rate of resin produ
- Schedule FA clarification
Related Threads
CAclubindia
