Existing Rate (Financial Year 2016 - 2017 or AY 2017-18)
| Section | Description | Cutoff | Rates | |||||
| 194J | Call Centers | 30000 p.a | 2% | |||||
Changes in 194J Due to Lockdown
However,Due to Lockdown,Government has temporarily reduced Rate by 25%
hence,TDS Rate on Call Centers is Changed as follows
| Current Rate | New Rate (Temporary) | |||||||
| TDS on Call Centers | 2% | 2%*75%=1.5% | ||||||
Note - This New Rate is Temporary only if TDS Deducted form 14 May 2020 to 31 Mar 2021
After this old Rate will be applicable
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
