TDS

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abhay srivastava (Querist)
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07 October 2009 Hi all,

suppose I have to make a payment to contractors who have appointed security guards in my college, college is non profit making organisation. If the payment amount is 250000, suggest me should I deduct the TDS on contract u/s 194c, if the duductee type is individual/huf - 1% and educationn cess or secondary education cess is applicable

TDS- 2500 only
Contractors Ac dr 250000
TO TDS payable 2500
TO Bank 247500 24750

Padmaja CA

Padmaja CA (Expert)
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08 October 2009 Yes Education cess 3% is applicable to ind/huf contractors so rate is 1.03%

then entry is

Security charges acc DR 250000/-

To TDS on security charges 2575/-
To Security contractor 247425
(This is Journal entry)

And when paid to contractor

Security contractor acc Dr 247425/-
To bank/cash 247425/-

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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08 October 2009 Beg to differ

Education Cess not applicable w.e.f 01.04.2009 except in case of payment of Salary and any Other payment to Non resident/Foreign company.

rate of TDS in this case from 01.04.2009 to 30.9.09 was 2 % and wef 01.10.09 is 1% only.