Existing Rate  (Financial Year 2016 - 2017 or AY 2017-18)

Section Description Cutoff Rate of TDS
194J Professional/Technical/Royalty/Non Compete Fees 30000 10%

New Rate of TDS (Applicable from 1 June 2017)

Section

 

Description Cutoff Rate of TDS
194J Professional/Technical/Royalty/Non Compete Fees    
  Paid to Business Exclusively in Call Center Business 30000 2%
  Other Persons 30000 10%

 

Example

Suppose a Mobile Company Vodafone hires the services of A Ltd. where A Ltd. will operate call center of Airtel at a cost of 1 lacs

  • Vodafone will deduct 10% TDS in this case and pay A ltd 90000 (Till 31 May,2017)
  • From 1 June 2017,2% TDS will be applicable. Vodafone will deduct 2% TDS in this case and pay A Ltd. 98000

 

  1. Tax Practical
  2. Budget Amendments - Changes in 2017-18
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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