Tds related query

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Alex Fernandes (Querist)

09 June 2009 Hellooo
I wanted to know that how can one can identify while deducting TDS the threshold limit that is company more than Rs 1crore or less than Rs 1crore
I am paying to a vendor TCS an amount of Rs 3,15,000 and i had deducted TDS at the rate of 2.26 i.e (2%tax,10%surcharge,3%education cess)whether it is correct.Please suggest me as early as possible.
Also if possible please explain what does the company more than Rs 1crore or less than Rs 1crore mean,whether their share capital should be Rs 1crore or the net worth

Jitender

Jitender (Expert)

09 June 2009 u need to deduct tds on the basis that whether payemnt to the co is exceeding 1 crore or not. it is not dependent upon the deductees income .Similarly it is applied to tcs.

Ratan Sharma

Ratan Sharma (Expert)

09 June 2009 Hi,
The payment made by you is below Rs. 1.00 crore therefore u need not have to deduct s.c. U have to deduct TDS @ 2.20%

chetan soni

chetan soni (Expert)

10 June 2009 For that you need to take declaration from company stating that their taxable income does not exceed Rs. 1Cr hence surcharge is not applicable. In case any company not wish to give you such declaration then deduct the surcharge also.

Also note the limit of Rs. 1Cr is for taxable income & not for share capital etc.

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