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TDS 194J FROM FY 2020-21

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Anoop srivastava

153 Points Posted on 01 August 2020

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

Replies (4)

Quick Summary

This discussion clarifies the TDS rates under Section 194J for the Financial Year 2020-21. It highlights that while call centre services attract a 2% TDS rate, most other technical services and professional services are subject to a 10% TDS rate. The conversation addresses a specific query where a short deduction demand was raised, emphasizing the importance of correctly identifying the nature of the payment to apply the appropriate TDS rate.

Rajarajan. K.S

Employee

44 Points Posted on 04 August 2020

Sir, 2% is applicable in case of call centre.. Rest all is 10%(now 7.5%)

Anoop srivastava

153 Points Posted on 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%