[IMPORTANT] - Change in TDS Norms
Hope you, your family are healthy and safe during this pandemic.
As we embark on a new financial year, effective 1st April 2020, TDS Deduction will be at 2% (of Basic Value) effective 1st Apr’20 as per Finance Act 2020 (under sec 194J - technical service or 194C- contractual service) – for all THE PINNACLE GROUP INC. Invoices raised towards services arrangement with your organization.
Section 194J of the Income Tax Act, 1961 has been amended by Section 97 of the Finance Act, 2020 by providing for TDS @ 2% in cases of fees for technical services (except professional services).
This amendment is effective from 1st April, 2020 and is applicable for any deduction of tax on and from 1st April, 2020.
The amended Section 194J reads as under: “Fees for professional or technical services." 194J.
(1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of—
(a) fees for professional services, or
(b) fees for technical services, or
(ba) any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company, or
(c) royalty, or
(d) any sum referred to in clause (va) of section 28,
This will also be applicable for all proforma invoices generated before April 1 2020 and not yet paid as the Tax invoice will be generated in this financial year.
Please inform your finance / purchase / accounting departments of this change.
Thanking You.
Regards,
Accounts Department
Friday, April 3, 2020