Priyanka Rastogi (working Professional) (28 Points)
11 June 2018Hi all,
We are receiving Call center services & deducting TDS @ 2% as per Section 194J. But the TDS return is processed with default & reason of default was lower deduction. When I asked this from the department they said we need to raise flag B as reason for lower deduction. Flag B require a certificate number which we do not have as it is not a lower deduction but deduction is at precribed rate. Please suggest what to do in it.
Thanks in advance,
Priyanka
Priyanka Rastogi
(working Professional)
(28 Points)
Replied 11 June 2018
As per the section -
Section 194J: Any sum paid by way of
a) Fee for professional services,
b) Fee for technical services
c) Royalty,
d) Remuneration/fee/commission to a director or
e) For not carrying out any activity in relation to any business
f) For not sharing any know-how, patent, copyright etc.
Note: With effect from June 1, 2017 the rate of TDS would be 2% in case of payee engaged in business of operation of call center.
As per my understanding 2% TDS rate is specified & not lower deduction
Mahesh Kumar
(85 Points)
Replied 11 June 2018
Just give your number ill transfer to my
CA, he will guide u or else send query
at https://ca4you.in/
Extract of relevant clause from Finance Bill, 2017
Amendment of section 194J.
65. 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.”.
If person engaged "'Önly" in the business of operation of call center
Priyanka Rastogi
(working Professional)
(28 Points)
Replied 11 June 2018
What if the vendor confirms that they are "'Önly" in the business of operation of call center ? Then also the issue will continue.
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