TDS RATES FROM 01-10-2009

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
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