TDS

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This query is : Resolved

abhay srivastava (Querist)

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)

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)

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.

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