less deduction of tds

all friends

my question is , Bill recd during june 2007 Rs.50000/- as professional charges, but wrongly i deduct the tds @ 5.15% instead of 10.30%..and paid the balance amount of Rs 47425to party. now the account show the nil balance. but our auditor told that you have less deducted.

what is the less deducted amount. ie. 2575 or 2871

pls confirm me and what is its treatment in webtel

thnks

t bhatia

Hi just check up wheather the transaction is taken place befor June2007 as its before June 1st the rates deducted as TDS by the company @ 5.15% is correct. If the transaction taken place after 01.06.2007 it should be considered for 10%TDS + 2%cess on the same.

Per the Act it should be,

Payment for Professional/Technical Services/Commission/ Brokerage

From 01.04.2007 to 31.05.2007	From 01.06.2007 onwards
Tax Rate 5%	Tax Rate 10%
Surcharge 10%	Surcharge 10% Tax
Education Cess 3% of the Surcharge	Education Cess : 3% of Tax & Surcharge
Overall TDS Rate 5.665% if surcharge is applicable otherwise 5.15%	Overall TDS rate 11.33% if surcharge is applicable, otherwise 10.30%