TDS rate in case payment relate to month prior to Oct-09

This query is : Resolved

Varsha R.Bansal (Querist)
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09 December 2009 Dear Experts,

In case a payment is been made now(i.e after Oct-09) which relates to invoices for month of Aug & sept-09 what rate of TDS be charged in case of Interest?
TDS is not deducted earlier but is deducted now after Oct-09
So tds rate should be 10% na in case of any assessee.

Regards,
Varsha

Ram Avtar Singh

Ram Avtar Singh (Expert)
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09 December 2009 in case of company,co opretive socity, form TDs@20%+++ and others 10%++++ before oct. 2009.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 December 2009 The issue is covered under section 194A. The section says that tax is to be deducted at the time of credit or payment which ever is earlier. So the rate prevailing on the date of passing the entry in the books of account has to be applied. Date of entry is not given in the query hence rate is not answered.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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09 December 2009 So far rate of TDS u/s 194A is concerned, it is w.e.f. 01.04.09.

The popular belief that the rate has been changed w.e.f. 01.10.09 is misplaced.

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