TDS u/s 194J @ 2% if Payee is Call Center w.e.f 01.06.2017

By | February 2, 2017
(Last Updated On: March 2, 2017)

TDS u/s 194J @ 2% if Payee is Call Center  w.e.f 01.06.2017

Summary :- section 194J   Amendment – 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.


Budget 2017-18 Memorandum Explaining section 194J   Amendment

Simplification of the provisions of tax deduction at source in case Fees for professional or technical services under section 194J

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.

Relevant Clause 65 of Finance Bill 2017 on section 194J   Amendment

Amendment of section 194J.

In section 194J of the Income-tax Act, after the third proviso and before the Explanation, the following proviso shall be inserted with effect from the 1st day of June, 2017, namely:—

“Provided also that the provisions of this section shall have effect, as if for the words “ten per cent.”, the words “two per cent.” had been substituted in the case of a payee, engaged only in the business of operation of call centre.”.

[ Read 194 J- TDS on Professional or Technical service : Complete Guide ]

Related Post on Budget 2017-18

Budget Speech 2017-18 -Download /Print

Finance Bill 2017 -Download /Print -Budget 2017-18

Memorandum Explaining Provisions in Finance Bill 2017

Updates  on Union Budget 2017-18

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