Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

TDS on professional charges

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Daya

Daya (Querist)
Follow

16 September 2020 whether TDS on professional charges is applicable @ 1.5%.
Please Reply in brief.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
Follow

16 September 2020 rate of TDS following two nature of payments is reduced to 2 (1.5%) per cent instead of 10 per cent (7.5%) under section 194J from 01-04-2020 by the Finance Act, 2020:

1. Fees for technical services (not being in the nature of professional services).
2. Royalty where such royalty is in the nature of consideration for sale, distribution or exhibition of cinematographic films.
For others, the 10 per cent rate of TDS shall continue to apply.

the government announced various relief measures on 13 May 2020. One of these was a reduction in the tax deducted at source (TDS) and tax collected at source (TCS) rates by 25 per cent on non-salaried payments.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now