TDS rate

This query is : Resolved

Panduranga (Querist)
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05 August 2010 I have not deducted TDS on labour charges paid. so please tell me how much percent i have to deduct what is the threshold for financial year 2009-10

Thanks

CA Sanat Pyne

CA Sanat Pyne (Expert)
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05 August 2010 Income Tax is to be deducted at source @ 1% if the contractor/sub contractor payee is an individual or HUF. Payment of amounts to persons other than Individual/HUF would attract TDS rate of 2%.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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05 August 2010 If the amount paid/payable or credited/likely to be credited to the contractor/sub-contractor does not exceed Rs.30,000/- in a single instance (Applicable from 1.7.2010. previously it was Rs.20,000). However, the total of amounts paid or credited during the financial year should not exceed Rs.75,000/-. If the said amount exceeds Rs.75,000/-, then, the liability for payment arises on the whole of amount paid or credited and not on the amount in excess of Rs.75,000/-.( The limit of Rs.75,000 is applicable from 1.7.2010. Previously it was Rs.50,000)

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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05 August 2010 agreed with pyne ji,
TDS on Labout charges are governed by Section 194 C.

VINOD ARORA

VINOD ARORA (Expert)
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05 August 2010 Agreed

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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05 August 2010 agreed,
single payment not exceed rs. 20,000/- or accural basis rs. 75000/- not exceed then no deduction otherwise as per pyne ji says.

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