The rate of TDS following two nature of payments is reduced to 2% instead of 10% 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.
*** As per this changes We have deducted TDS & deposited as per applicable rate of 2% for Technical services, Filed 26Q for Q1 F.Y.2020-21.
But 26Q is processed with defaults of short deduction of TDS. Default summary details shows payable amount of short deduction of TDS with Interest.
02 August 2020
So far there are no utility for Fy 20-21 in mean time you have filled the return so please contact to help line number of TRACES Vaishali Ghaziabad. TDS rate for technical services is 1.5% as against 2% and 7.5% for Professional services. Thanks
CAclubindia
