TDS Rate Chart FY 2009 - 2010 - Income Tax

TDS Rate Chart FY 2009 - 2010

Page no : 2

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 18 January 2010

Submitted above post without attachment. Attached here

Attached File : 23 finance act 2009.doc downloaded: 207 times

RAJENDRA PARAKHI (MANAGER-FINANCE & ACCOUNTS) (65 Points)
Replied 19 January 2010

I wanted some clarification regarding TDS provisions.

As per the amended Section 194C there are changes in the rates of TDS effective October 1, 2009 , Also law stipulates that there is no need to deduct Tax in case of transport contractors if PAN in furnished.

How do we interpret this?

If a transporter submits his bill dated July 20, 2009 to us in October 2009 or on any later date should we deduct tax or no need to deduct tax? [having furnished PAN]

Similarly if an advertisement contractor submits a bill dated Sep-09 - after October 2009 - should we apply old rate ?

Kindly clarify at your earliest.

Regards & thanks

Rajan

CA. RUPESH JOSHI (Chartered Accountant) (174 Points)
Replied 20 January 2010

Rajendra,

TDS provisions requires to deduct tax at the time of credit or payment, whichever is earlier. Hence if you have provided for the tansport charges in July, then the old rates are applicable. But if you book the bill on receipt basis i.e. bill dated 20/07/09 is booked after 01/10/09 then the new TDS rates are applicable. This rule is applicable for all the TDS sections.

The date of bill is not material it is the dateof credit or payment that is to be considered.

CA. RUPESH JOSHI (Chartered Accountant) (174 Points)
Replied 20 January 2010

Dear Aditya

You are absolutely right. The rates were changed by the Finance Act 2009 in the budget no such provision was introduced. TDS chart in ready reckoner too mentions the rate as 20%. You may refer page 32 (item 2) of VG Mehta Ready reckoner for the rates as per Finance Act 2009