Section - 194J - Simplification of the provisions of tax deduction at
source in case Fees for professional or technical services –
The existing provisions of this
section requires deduction of tax at source at the rate of 10% of the amount
paid or payable to a resident by way of fees for professional services or fees
for technical services if the sum paid or payable exceeds Rs.30000/- to a
person in a year.
The amendment proposes to reduce
the rate of tax to 2% from the existing 10% in case of payments to a person
engaged only in the business of operation of call centres.
The amendment will be effective
from 1st June 2017.