TDS Rates Applicable from 01-10-2009

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14 February 2010  

TDS RATES FOR ACCOUNTING YEAR 2009-10 ONWARDS

 

TDS RATES APPLICABLE FROM 01.10.2009

 

Section Code

 

Nature of Payment

 

Threshhold Limit to deduct tax

 

In case recipient is an Individual / HUF

 

If the recipient is  other than Individual / HUF

 

 

194-A

 

Interest other than interest on securities

Interest from Banking Company

 

Rs.10,000/- p.a.

 

10 %

 

20 %

 

194-A

Interest other than interest on securities

Interest other than from Banking Company

 

Rs.5,000/- p.a.

 

10 %

 

20 %

 

194-C

Payment to Contractor

 

Rs.20,000/- Per Single Contract  or Rs.50,000/- exceed during the financial year

 

 

1 %

 

2 %

 

194-C

Payment to Advertising Contractor / Sub Contractor

 

Rs.20,000/- Per Single Contract  or Rs.50,000/- exceed during the financial year

 

 

1 %

 

2 %

 

194-C

Payment to transport contractor / sub contractor

 

If PAN Quoted

 

NIL

 

NIL

 

194-C

Payment to transport contractor / sub contractor

 

If PAN not quoted

 

1%

 

*20% from 01.04.2010

 

 

2%

 

*20% from 01.04.2010

 

 

Section Code

 

Nature of Payment

 

Threshhold Limit to deduct tax

 

In case recipient is an Individual / HUF

 

If the recipient is  other than Individual / HUF

 

 

194-H

Payment of commission or brokerage to resident

 

Rs.2,500/- p.a.

 

10 %

 

10 %

 

194-I

Payment of Rent

 

Rs.1,20,000/- p.a.

 

 

10%

 

*20% from 01.04.2010

 

 

10%

 

*20% from 01.04.2010

 

 

194-I

 

Payment of Rent for use of Plant , Machinery or Equipment

 

Rs.1,20,000/- p.a.

 

 

2 %

 

*20% from 01.04.2010

 

 

2 %

 

*20% from 01.04.2010

 

 

194-J

Payment of professional or technical services

 

Rs.20,000/- p.a.

 

10 %

 

10 %

Note :

 

  1. Surcharge ,Education Cess and Health Cess  is not applicable for TDS.

  2. w.e.f 01-10-2009, the nil rate will be applicable if the transporter quotes his PAN.  If PAN is not quoted the rate will be 1% for an individual/HUF transporter and 2% for other transporters up  to 31-03-2010

  3. The Rate of TDS will be 20% in all cases, if PAN is not quoted by the deductee (including transporter) w.e.f. 01-04-2010

TCS RATES FOR ACCOUNTING YEAR 2009-10 ONWARDS

 

TCS RATES APPLICABLE FROM 01.10.2009

 

Section Code

 

Nature of Payment

 

In case recipient is an Individual / HUF

/ Company

 

1.

 

Scrap

 

 

1 %

Note  :  Definition   of   scrap  :   ‘Scrap’   has  been  defined  as waste and scrap from the manufacture  or  mechanical  working  of  materials which is definitely not usable as such because  of   breakage,  cutting up,  wear  and  other  reasons.  It would include only such waste  or  scrap  which  arises  from  manufacture  or  mechanical  working  of  materials. Further,  such  waste should not be usable as such. Accordingly, it would not include any waste or scrap –

  1. which does not arise from manufacture or mechanical working of materials.

  2. which is usable as such.

Thus the following are not covered –

  1. the waste or scrap arising from packing materials, newspaper, old machinery scrapped, etc. which cannot be said to arise from manufacture, or

  2. by-products generated from the manufacturing process as the same could be used as such.

It  can  inferred  that,  in  case  of  sale  of  scrap, the provision would apply to only those sellers  who  are  engaged  in  the  business  of  manufacturing or mechanical working of

materials.

Note :

 

1.Surcharge ,Education Cess and Health Cess  is not applicable for TCS.