Section 206AA

TDS 1373 views 3 replies

Himanshu

Manager

45 Points Joined July 2009

As per section 206AA the TDS rate has been made effective @ 20% w.e.f 1st Aril 2010 if the Foregin company fails to produce PAN card.

We have rendered service to a company till 31st March 2010 and have nuliified our contract since 1st April 2010. The company owes us money for service provided from December 2009 to 31st march 2010.

In this case what will be the rate of TDS. Will it be 10.33 % which was earlier or will they deduct us @ 20% [but as per our understanding this is effective from 1st April 2010].

Our company doesnt have a Indian PAN card.

Replies (3)

Kalpesh Chauhan,

Tax Assistant (Accounting Technician CA

8311 Points Joined April 2008

Suggestions for Group II IPCC. & PCC.

https://www.caclubindia.com/forum/suggestions-for-group-ii-ipcc-pcc-paper-7-informa-87331.asp ;

https://www.caclubindia.com/forum/suggestions-for-group-ii-ipcc-pcc-paper-6-auditing-87330.asp ;

https://www.caclubindia.com/forum/suggestions-for-group-ii-ipcc-pcc-paper-5-advanced-ac-87329.asp

Sandeep Kumar

learner

81 Points Joined September 2009

They will Deduct the TDS @ 20%, because they will pay u after 01.04.2010 n will deduct TDS on the same so TDS rates will be which are applicable after 01.04.2010

195. ⁹⁸[(1) ⁹⁹Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest ¹[***] or any other sum chargeable under the provisions of this Act (not being income chargeable under the head “Salaries” ²[***]) shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force :"

I believe TDS should be deducted as per the date on which the service has been provided.

If the contractors doesnt make me payment today and if he makes me payment after 10 years am i liable to pay TDS which is applicable after 10 years on TDS which is applicable on date of service provided.

In case i file my income tax late .... 5 years back it was 20% [suppose] today that income is not in tax slab ... i beleive if i file late also then also i will have to pay 10% ... i cant take exemption because as per today rate that amount is not in slab