TDS Query-Pls provide solution

This query is : Resolved

amol (Querist)
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08 October 2009 from 1.10.09 efftects in TDS rates are applicable. all Cess & surcharge are removed from 1.10.09.

we are going to make payment to contractor & sub contractor (Advt). the bills are for the period of august & sept 09. the date on bills are sept & august 09.

now in Oct. month we have to make the payment to them, My Query is At what rate should i deduct TDS is it 2% with Ed.cess or Only 2% without Ed.cess.

Regards
Amol

Shyam Lal Naik

Shyam Lal Naik (Expert)
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08 October 2009 Sir,

The impression that all cess and surcharge are removed only w.e.f. 01.10.09 is in correct.

These has been removed w.e.f. 01.04.09.

If you have deducted any surcharge & Cess, pay it.

For fresh deductions, no need to deduct any Surcharge & Cess, except TDS on salary and payment to non residents.

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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08 October 2009 Cess and surcharges have been removed w.e.f 01.04.2009 except payment of Salary and payment to Non resident and/or Foreign Company.

New rate s are there for some sections of TDS w.e.f 01.10.2009.

Now your bills for Aug & Sept 09 to be accopunted for in books in the concerned month i.e. expenses to be debited before 01.10.2009 and TDS is payable on date of payment or credit whichever is earlier so rates before 01.10.2009 is pertinent unless you follow cash basis of accounting.

Foe Advt contract rate was only 1 % upto 30.09.2009 and w.e.f. 01.10.09 it becomes
1% if paid to Individual/HUF and 2 % for payment to others for all type of contracts.

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