I am a partnership firm having a business of manufacturing and job work, I paid amount to my contractor s for a contract for the month of April and May and didn't deduct TDS on it.
What will be my Tds liability (% of deduction , along with interest or any other liabilities that will attract)
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TDS RATE AND PAYMENT
Replies (3)
Quick Summary
If the contractor party is a firm then you have to deduct 2% otherwise for individuals 1%. TDS with interest rate of 0.75% per month according to the ordinance from ministry of finance.
eg. If u paid the amount to the contractor on 05/04/2020 then you to pay the TDS on 07/05/2020 or before otherwise you have to pay interest. TDS to be paid on 7th day of succeding payment to contractors .
eg. If u paid the amount to the contractor on 05/04/2020 then you to pay the TDS on 07/05/2020 or before otherwise you have to pay interest. TDS to be paid on 7th day of succeding payment to contractors .
.0.75% interest ? is this change made due to corona lock down ..I think earlier it was 1.5%
Yeah this 0.75% interest in TDS in included in covid -19 relief package.It will take time to apply in traces and income tax.
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