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Chapter VII
PAYMENT OF TAX BEFORE ASSESSMENT
52AA. 1[(1) Where any payment is to be made by a specified person to a resident on account of a service as mentioned in this section, the person responsible for making the payment shall, at the time of making such payment, deduct income tax at the rate specified in the Table below:-
Table
|
SL. No |
Description of service and payment |
Rate |
|
1. |
Advisory or consultancy service |
10%
|
|
2. |
(i) Professional service;
(ii) technical services fee; or
(iii) technical assistance fee.
|
10%
|
|
3. |
(i) Catering service;
(ii) Cleaning service;
(iii) Collection and recovery service;
(iv) Private security service;
(v) Manpower supply service;
(vi) Creative media service;
(vii) Public relations service;
(viii) Event management service;
(ix) Training, workshop, etc. organization and management service;
(x) Courier service;
(xi) Packing and Shifting service;
(xii) Any other service of similar nature-
(a) on commission or fee
(b) on gross bill amount |
10% 2% |
|
4. |
Media buying agency service
(a) on commission or fee
(b) on gross bill amount
|
10%
0.65% |
|
5. |
Indenting commission |
8%
|
|
6. |
Meeting fees, training fees or honorarium |
10%
|
|
7. |
Mobile network operator, technical support service provider
|
12% |
|
8. |
Credit rating service |
10%
|
|
9. |
Motor garage or workshop |
8%
|
|
10. |
Private container port or dockyard service |
8%
|
|
11. |
Shipping agency commission |
8%
|
|
12. |
Stevedoring/berth operator /terminal operator/Ship handling operator –
(a) on commission or fee
(b) on gross bill amount |
10%
5% |
|
|
|
|
|
13. |
(i) Transport service, carrying service, vehicle rental service, Repair and maintenance service;
(ii) Any other service under any sharing economy platform including ride sharing service, coworking space providing service and accommodation providing service;
|
5% |
|
14. |
Wheeling charge for electricity transmission |
3%
|
|
15. |
Internet Service |
10%
|
|
16. |
Service delivery agents engaged in mobile financial services or channel partners of mobile financial services
|
10% |
|
17. |
Any other service which is not mentioned in Chapter VII of this Ordinance and is not a service provided by any bank, insurance, mobile financial services or financial institutions. |
10% |
Provided that-
(a) if the amount for services mentioned in SL No. 3 and 4 of the Table shows both commission or fee and gross bill amount tax shall be the higher amount between (i) and (ii) where-
(ii) B x C x D, where-
B = Gross bill amount.
C = 10% of Sl. 3 and 2.5% for Sl. 4, and
D = rate of tax applicable on commission or fee;
(b) the rate of tax shall be fifty percent (50%) higher if the payee fails to submit proof of submission of return at the time of making the payment;
(c) the rate of tax shall be fifty percent (50%) higher if the payee does not receive payment by bank transfer;
(d) where the Board, on an application made in this behalf, gives certificate in writing that the person rendering such service is otherwise exempted from tax under any provision of this Ordinance, the payment referred to in this section shall be made without any deduction or with deduction at a lesser rate for that income year.]
(2) In this section-
(a) “specified person” shall have the same meaning as in clause (a) of sub-section (2) of section 52;
(b) “contract” includes a sub-contract, any subsequent contract, an agreement or an arrangement, whether written or not;
(c) “base amount” means the higher of the-
(i) contract value; or
(ii) bill or invoice amount ; or
(iii) payment;
(d) “payment” includes a transfer, a credit or an adjustment of payment 2[or an order or instruction of making payment];
(e) “professional services” means-
(i) services rendered by a doctor;
(ii) services rendered by a person carrying on any profession or any other services applying professional
knowledge.]
