TDS rate

This query is : Resolved

jignesh modi (Querist)
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10 October 2009 Dear sir

We have received One bill from sub contractor and they are service provider
and Bill for the month of Aug-09
Please tell me in these bill we have
deduct tax as per new Rate which is applicable from 1 oct 09 or Old rate

If it is New rate than plese tell me on 7150/- how much tds deducted as per new rate

Plesae treted mater as most urgent.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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10 October 2009 Period of service or bill date is not considered for TDS deduction.

The date of credit or payment whichever is considered. Please decide which rate is applicable to you.

The concept of sub-contract is not relevant w.e.f. 01-10-09. The rates are same for contractor and sub contractor.

W.e.f. 01-10-09 rate depend on the assessable status of the deductee. If Indivisual/HUF rate is 1%, Else 2%.

Gokul

Gokul (Expert)
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10 October 2009 Mr. Jignesh,
As per IT act 1962, TDS should be deducted on the dateof booking such expenses or paid advance for such expenses whichever earlier and the rules applicable on the date will be aapplicable to dedct tax at source so go throuth the rules as on the date of booking expenses or advance for such expenses and deduct TDS as applicable on that date.

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