Rate of TDS

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Deepak Kakkar (Querist)
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22 August 2009 At present (FY 2009-2010) what is the rate of TDS under the following circumstances

a. In the case of contractor
I. If the payment is less than Rs.10 Lacs
II. If the payment is more than Rs.10 Lacs

b. In the case of rent paid
I. If the payment is less than Rs.10 Lacs
II. If the payment is more than Rs.10 Lacs

sivadas chettoor

sivadas chettoor (Expert)
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22 August 2009 Regarding the rate of tax for contracts it will vary according to the nature of the contract. It will vary according to the status of the parties as well as the quantum of the contract sum. So please supply more information.
Regarding rent also the position is the same and I require more details.

sivadas chettoor
siva208@yahoo.com

Deepak Kakkar

Deepak Kakkar (Querist)
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23 August 2009 Hi Mr.Sivadas,

Thanks much for the reply, however in the case of the contractor, the nature of contract is towards fabrication of garments, dyeing of garments.

In the case of rent, i am referring to the property rent.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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20 July 2025 a) TDS on Contractor Payments (Fabrication/Dyeing of Garments)
(Under Section 194C)

Payment Amount TDS Rate (with PAN) TDS Rate (without PAN)
Less than Rs. 10 Lakhs 2% 20%
More than Rs. 10 Lakhs 2% 20%
Note: For contractor payments, the rate is generally 2% irrespective of amount, provided PAN is available.
b) TDS on Rent Paid (Property Rent)
(Under Section 194I)

Payment Amount TDS Rate (with PAN) TDS Rate (without PAN)
Less than Rs. 10 Lakhs 10% 20%
More than Rs. 10 Lakhs 10% 20%
Note:
Rent paid on land, building, or furniture/fixtures attracts 10% TDS if it exceeds Rs. 1,80,000 per annum.
Threshold of Rs.10 lakh in your query is not applicable as per section 194I; the applicable threshold is Rs.1,80,000 annually. If rent exceeds this, TDS applies.

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