Thursday 16 February 2017

TDS rate reduced from 10% to 2% on Call Centre Business Income –Budget 2017.


Budget 2017, proposed to amend section 194J to reduce the rate of deduction of tax at source to 2% to from 10%, in case of payments received or credited to a payee, being a person engaged only in the business of operation of call centre.

Section 194J provides that a specified person is required to deduct an amount equal to ten per cent. of any sum payable or paid ( whichever is earlier) to a resident by way of fees for professional services or fees for technical services provided such sum paid/payable or aggregate of sum paid/payable exceeds thirty thousand rupees to a person in a financial year.

This will be effective from 1st June 2017.


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