Section 194J TDS on Call Centers Now 2%

Last updated at April 16, 2024 by

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

 

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.