Nitesh Tejwani (no) (66 Points)
27 February 2014Suppose a Company gives contract to another company for call centre services i.e. Helpdesk services attending inbound and outbound calls from customers with the help of toll free number.
Query is what is the tds rate applicable to this service? 194C or 194J?
Mihir
(Wealth Manager)
(5293 Points)
Replied 27 February 2014
I think TDS u/s 194J shall apply.
Wait for more replies.
Pradeep Gupta
(Accounts Manager)
(298 Points)
Replied 01 March 2014
| Originally posted by : Nitesh Tejwani | ||
 |
Suppose a Company gives contract to another company for call centre services i.e. Helpdesk services attending inbound and outbound calls from customers with the help of toll free number. Query is what is the tds rate applicable to this service? 194C or 194J? |
 |
Sec 194 J which states that TDS to be deducted @ 10% on Technical Services, Professional Services, Royalty. Other professions notified by CBDT u/s 44AA(1) includes information technology services.
CBDT vide Notification No. 890(E) dated 26.9.2000 [F. No. 142/49/2000-TPL] has treated the Call Centre services as information technology enabled products or services for the purposes of sections 10A(b)(i)(2), 10B(b)(i)(2), 80HHE(b).
Therefore, Sec. 194J should be applicable.
CAclubindia
