TDS rate

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This query is : Resolved

Panduranga (Querist)

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)

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)

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)

05 August 2010 agreed with pyne ji,
TDS on Labout charges are governed by Section 194 C.

VINOD ARORA

VINOD ARORA (Expert)

05 August 2010 Agreed

Murtaza I Bhagat

Murtaza I Bhagat (Expert)

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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