• Aug
  • 20
  • 2009

TDS / TCS Rate Chart & Provisions applicable from 01.10.2009

Posted In Income Tax | 106 Comments » Print Friendly and PDF

TDS Rates • For payment to residents and domestic companies, there will be no surcharge and cess on the basic rate of TDS. This simplifies TDS rates to a great extent. • There are changes in TDS rates for payments to contractors and payment of rent. Those are explained below. TDS on payment to contractors: Section 194C

  • The proposed amendment is effective from 01-10-2009.
  • Rate of deduction: Rate of deduction is now based on the status of payee and not on the basis of type of payment. Earlier the rate was 2% for payment to contractors and 1% for payment to sub-contractors and advertisement contracts. Now the rate is 1% for payments made to individuals and HUF and 2% in other cases.
  • Contractor manufacturing is now covered as “work” and is liable to TDS under this section.
    • This is defined as manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer, but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer.
    • If the invoice mentions value of material separately then such value will be excluded for calculation of TDS, in all other cases TDS will apply to total invoice value.
  • Persons carrying business of plying, hiring or leasing goods carriages.
    • Need not deduct TDS if contractor furnishes PAN.
    • Will have to furnish information as may be prescribed.

TDS on Rent: Section 194I The proposed amendment is effective from 01-10-2009.

Rent Earlier Now
Plant and Machinery 10 2%
Land building 15% for Individuals / HUF 10% and 20% for others 10%

eTDS Statement Filing: Section 200 • The proposed amendment is effective from 01-10-2009. Currently section 200 specifies quarterly filing of eTDS statements. • This is changed and now CBDT can specify the periodicity for which the statements are to be filed.

Processing of eTDS Statements: Section 200A The proposed amendment is effective from 01-04-2010. This new section introduces processing of eTDS Statements in the following manner.

• Sum deductible shall be calculated after making adjustment of arithmetical errors and apparent incorrect claims.

• Interest will be calculated.

• From the above actual amount paid will be deducted to arrive at TDS payable or refundable.

• Deductor will be informed about the TDS payable or refundable.

• Time limit for the processing is within one year of the financial year of filing of eTDS statement.

• CBDT will make a scheme of centralized processing of e-TDS Statements.

Time limit for Penalty proceedings: Section 201

  • The proposed amendment is effective from 01-04-2010.
  • A person is deemed to be an assesee in default for failure to deduct TDS in whole or part. • The order for such default now will have to be passed.
  • Within two years from the end of the financial year in which the eTDS statement is filed.
  • Within four years from the end of the financial year in which payment is made or credit is given, in any other case.
  • For financial year commencing on or before 01-04-2007, this time limit is upto 31st March 2011.

TDS Rate when PAN not available: Section 206AA

The proposed amendment is effective from 01-04-2010.

• If deductee fails to furnish PAN to deductor, the deductor shall apply highest of the following rates for deducting TDS. (i) at the rate specified in the relevant provision of this Act; or (ii) at the rate or rates in force; or (iii) at the rate of 20%.

• Form 15G/ 15H declaration for no deduction of tax will become invalid if PAN is not mentioned therein.

• PAN will have to be mentioned in bills, vouchers and other documents communicated between deductor and deductee.

• If deductee furnishes invalid PAN or submits PAN belonging to someone else, it will amount to non furnishing of PAN.

Other Changes

• No TDS on zero coupon bonds issued by scheduled banks: Section 194A. Effective 01-04-2009

• No TDS for payments from New Pension Scheme: Section 197A. Effective 01-04-2009.

• Quarterly statement for interest paid without deducting TDS is now to be submitted for “such periods as may be prescribed” : Section 206A Effective 01-10-2009.

• Quarterly statement regarding tax collection at sources are now to be submitted for ” such periods as may be prescribed”: Section 206C Effective 01-10-2009.

Form 24Q:

Male Female Senior Citizen Tax (%)
For Income Between 0 to 1,60,000 For Income Between 0 to 1,90,000 For Income Between 0 to 2,40,000 0
For Income Between 1,60,001 to 3,00,000 For Income Between 1,90,001 to 3,00,000 For Income Between 2,40,001 to 3,00,000 10
For Income Between 3,00,001 to 5,00,000 For Income Between 3,00,001 to 5,00,000 For Income Between 3,00,001 to 5,00,000 20
For Income above 5,00,001 For Income above 5,00,001 For Income above 5,00,001 30
Surcharge 0
Education Cess 3

Form 26Q:

Section Nature of Payment Status Tax (%)
193 Interest on Debentures & Securities 10
194
Deemed Dividend
10
194A
Other Interest
> Aggregate sum exceeding Rs. 10,000 for Banking Co’s , etc.per person during the financial year.
> Aggregate sum exceeding Rs. 5,000 per person during the financial year
10
194B Lottery/Crossword Puzzle > Rs.5,000 30
194BB Winnings from Horse Race > Rs. 2,500 30
194C Contracts to Transporter, who has provided a valid PAN 0
Contracts to Individuals/HUF 1
Contracts to others 2
194D Insurance Commission > Rs.5,000 10
194EE Withdrawal from NSS > Rs.2,500 20
194F Repurchase of Units by MF/UTI 20
194G Commission on Sale of Lottery Tickets > Rs.1,000 10
194H Commission or Brokerage > Rs.2,500 10
194I Rent > Rs.1,20,000 p. a.
Rent of Plant & Machinery
2
Rent of Land, Building, Furniture, etc 10
194J Professional or Technical Fess > Rs.20,000 10
194LA Compensation on Compulsory Acquisition of immovable property >Rs.1,00,000 during the financial year 10
Surcharge 0
Education Cess 0
Note:  If there is no PAN details, then from 1st April 2010 TDS will be deduted at the rate of 20%.

Form 27Q:

Section Nature of Payment Status Tax (%)
194E Payment to nonresident sportsmen or sports association 10
195(a) Income from foreign exchange assets payable to an Indian citizen 20
195(b) Income by way of long-term capital gain referred to in sec. 115E 10
195(c) Income by way of Short-term capital gains u/s. 111A 15
195(d) Income from other long-term capital gains 20
195(e) Income by way of interest payable by Government/Indian concern on money borrowed or debt incurred by Government or Indian concern in foreign currency 20
195(f) Royalty payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern after March 31, 1976, where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to section 115A(1A) to the Indian concern or in respect of computer software referred to in the second proviso to section 115(1A), to a person resident in India -
1.Where the agreement is made before June 1, 1997 30
2.Where the agreement is made after May 31, 1997 but before June 1, 2005 20
3.Where the agreement is made on or after June 1, 2005 10
195(g) Royalty (not being royalty of the nature referred to in (e) sub para) payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to matter included in the industrial policy, the agreement is in accordance with that policy
1.Where the agreement is made after March 31, 1961 but before April 1, 1976 COMPANY 50
OTHERS 30
2.Where the agreement is made after March 31, 1976 but before June 1, 1997 30
3.Where the agreement is made after May 31, 1997 but before June 1, 1997 20
4.Where the agreement is made on or after June 1, 2005 10
195(h) Fee for technical services payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to matter included in the industrial policy, the agreement is in accordance with the policy -
1.Where the agreement is made after February 29, 1964 but before April 1, 1976 COMPANY 50
OTHERS 30
2.Where the agreement is made after March 31, 1976 but before June 1, 1997 30
3.Where the agreement is made after May 31, 1997 but before June 1, 2005 20
4.Where the agreement is made on or after June 1, 2005 10
195(i) Any other income COMPANY 40
OTHERS 30
196A Income in respect of Units of Non-residents 20
196B Income and Long-term Capital gain from units of an Off shore fund 10
196C Income and Long-term Capital Gain from Foreign Currency Bonds or shares of indian companies 10
196D Income of Foreign Institutional Investors for Securities 20
Surcharge ( On Tax) Applicable for Foreign Companies if payment/credit exceeds Rs.1 crore of such companies 2.5
Education Cess on Tax deducted Plus Surcharge 3

Form 27EQ:

Collection Code Nature of Purchase Tax (%)
6CA Alcoholic liquor for human consumption 1
6CB Timber obtained under a forest lease 2.5
6CC Timber obtained under any mode other than forest lease 2.5
6CD Any other forest product not being timber or tendu leave 2.5
6CE Scrap 1
6CF Parking Lot 2
6CG Toll plaza 2
6CH Mining and quarrying 2
6CI Tendu leaves 5
Surcharge
(On Tax)
Applicable for Foreign Companies if collections exceeds Rs.1 crore of such companies 2.5
Education Cess Applicable for Foreign Companies 3

Download TDS Rate Chart For Financial year 2009-10 (A.Y. 2010-11) containing TDS rate prior budget and after budget alongwith due date chart and Income tax rate chart

Download TDS Rate Calculator Pre Budget for the Period from 01.04.2009 to 30.09.2009


106 Responses to “TDS / TCS Rate Chart & Provisions applicable from 01.10.2009”

  1. arathi says:

    Is TDS applicable towards purchase of Medical equipments

  2. Annie says:

    What is the TDS rate applicable to a female contractual employee in a private company? What is the limit?

  3. Annie says:

    I am a femal employee working in a private company on contractual basis. I would like to know what is the TDS deduction rate and the limit for a female employee in a private company?

  4. rajiv says:

    i am company and one vendor tds deducted u/ 194c but paid u/s 194J and form 16A appear appear sec 194j, can i revise the return or what best solution, plz suggest us.

    Thanks Rajiv

  5. anuguru says:

    Sir,

    Kindly clarify the following: In respect TDS for the accounting year 2008-09 paid by the deductor on 25/10/2011. can v get the refund.
    regards
    anuguru

  6. Dinesh Parab says:

    What is the rate of tax collected source on sale of scrap if no pan number is there ?

    Please reply.

  7. Jayesh says:

    I was finding TDS rate for insurance commission. I am a individual person. I want to calculate TDS on my commission. but dint get how to calculate, but from your site i got much more information about tax rate for current Assessment year. Thanks for creating such a informative site.

  8. Gaurav Gupta says:

    I am maintaining my books of accounts on cash basis but my client maintained its books of accounts on accrual basis & deduct TDS in F.Y. 2009-10 & provide the TDS certificate for the same in F.Y.2009-10 but I record my same income on cash basis in F.Y. 2010-11. So please confirm whether it is allowed to me in F.Y.2010-11.

  9. Ashwinkumar Tiwari says:

    i am paying commission in germany. i am indian Citizen. what is the tds rate applicable for germany. what rate should i deduct from commission.

  10. Imran Kazi says:

    Can you please confirm whether education cess need to add on TDS payments for the FY 2009-2010? If Yes, can you please help me in getting such a circular?

  11. S.Rangaraj says:

    We have issued order for hiring of car for a fixed period. The hire charges include (1) rental charges for the car, (2)running expenses on per KM basis and (3) wages of driver. Bills are payable on monthly basis. Pl. advice whether TDS is to be deducted u/s.194 C or u/s. 194 I of the Income Tax Act.

  12. sp jain says:

    hello sir,
    plz tel me whether tds is deducted for foreign remittance to usa and china for freight,if yes then at what rate,plz reply as soon as possible

  13. Manish says:

    Dear Sir,
    If (transporter)a unit of private limited com.provide the service of hiring of local sight seen in delhi,then what will be the tds rate for him. will he treated as individual or as other type. I mean the rate will apply 1% or 2% for him.

    Thanking u in advance for your support.
    Thanks,
    Manish,9990912097

  14. NB Raju says:

    (a) I am working as a Professional Software Consultant in India from April 2010 and as per the co. offer I will get Rs 2 lacs pm. (b) I need to raise a Bill/Invoice to the Co every Month. (c) Should I need to add Tax in my Bill/Invoice. (d) What is the Tax Rate I should Add. (e) Should I need to deposit the tax I added in my Bill every Month or Qtrly. (f) When I should deposit the tax to Govt, i.e. after I get my payment ? (g) Company told they will deduct @ 10% on my monthly Bill/Invoice. (h) I am yet to get registered with Central Excise/Service Tax dept. (i) What are the Forms required to submit. Please advise me. Regards. NB Raju

  15. A.A. Sawant says:

    We had given contract to local persone for shifting (Lebour charges & Transportation charges) our office. & he charged Rs.36K for the same & we paid him cash without deduct TDS. Is it ok as per income tax ACT? what amount should be paid in cash without deduct tDS?

  16. Yogesh Agarwal says:

    Please provide me a Formate of Delaration for Non Deduction of TDS on a Transpoter who provide me a valid PAN. and instrct me about if any additional rules and regualtion.

  17. Shyam says:

    What is 15ca/15cb is any remittance paid to foreign agent as commission against export order we hv to deduct any charges, if not what is the clause of plea reason.

  18. Shyam says:

    Is TDS or any deduction to be charges against commission pay/paid to overseas agent against export orders which hv been shows on shipping bill ?

  19. gopal says:

    Is TDS to be dedcuted in the service provided by Clearing farwrding agent? Is clearning farwarding agent will be treated as TRANSPORTER

  20. Mr.Kalpesh Patel says:

    Gentleman
    Please clarify this matter
    Company Director’s Bonus & Salary more than Rs. 30,000/- can be paid in Cash at a time or it can be paid in two parts of Rs. 15,000/-

  21. pnrpisharody says:

    i am dutybound to collect income tax at source on sale of scrap.i want to no if there is a limit on sale proceeds that attract surcharge or surcharge is leviable on each sale irrespective of amount

  22. A K Paital says:

    Our vender is providing technical services for medical equipments. They are forcing us to deduct TDS on their bill @2% instead of 10% which our CA advice us to duduct.

  23. Audience Leadership,advance dress spirit upper spread general simple radio buy neither both opposition lead centre busy arrive star judge spend hell address trial one cry device instance increasingly according ready hope until after short impression text elderly once recently so troop quickly help home annual most various understand display intend female location decade slow ever stuff previous now produce late bone complex lot add something increase sheet search an vehicle contribution nation fill university century research in establishment achieve quick see wild assess newspaper extent instrument exchange

  24. jiycnh says:

    Y625mp kfkdwrlwrddy, [url=http://hgruuybdnrou.com/]hgruuybdnrou[/url], [link=http://obdvflpzpjld.com/]obdvflpzpjld[/link], http://fsjwffwbqhsg.com/

  25. mkngmric says:

    l72GBW tbkzvlrolwhu, [url=http://nezmmuqipvbp.com/]nezmmuqipvbp[/url], [link=http://ogqmqrgmldse.com/]ogqmqrgmldse[/link], http://pamnlxrvadhh.com/

  26. Rajesh Prajapati says:

    We are maintaing books of accounts in SAP.In SAP no books of accounts are mainained seperately except cash book and general ledger like other accounting programmes Tally. Oracle etc.Ther is aprovision to mention books of account smaintained and examined in 3CD report under clause 9a & 9b.I sthere any standard wordings to be mentioned under this clause whcih any comapny has filed 3CD report under maintainence of books of accounts in SAP.

  27. CA Surendra Kumar Rakhecha says:

    a “live” discussion. I “liked” it.

  28. There is only one rate of TDS on interest u/s. 194A after 01.10.2009 irrespective of ststus of deductee that is 10% on interest amount.

  29. RM says:

    sir, I had posted a query regarding tds rate on domestic company for section 194A …yesterday …it was uploaded & viewable on site but not now … what is the rate of tds u/s .194 A for pvt domestic co ?

  30. In my opinion for the whole financial year.

  31. Asif Ansari says:

    Please confirm that cess is not applicable for whole the FY 2009-10 for from 01.10.2009 in case of TDS

  32. Asif Ansari says:

    Please confirm that cess is not applicable for whole the FY 2009-10 for from 01.10.2009

  33. From 01.10.2009 as mentioned in the header of post.

  34. v p ranganathan says:

    pls also reply with effective date of this rate change!!

  35. v p ranganathan says:

    sir,
    pls let me know the rate of tds for commission (insurance) under 194D. is it sync to 10% post budget? previously two rates were there? pls clarify

  36. ARCHANA.R.PUNJABI says:

    what is the exact percent of tds amount to be deducted from the bill amount if it is more the 1 lac

  37. Normal rate of TDS which is applicable from 01.10.2009. Provision of deduction of TDS @ 20% for non supply of PAN is applicable from 01.04.2010.

  38. TDS will be deducted at the Rate which is applicable 31.03.2010.

  39. Ashok Gajra says:

    if the transportar are not supply PAN NO. than what is the rate are applicable

  40. Ashok Gajra says:

    i want to know interest on loan paid will be31-03-2010 but intetest period are 01-04-2009 to 31-03-2010 so which rate we will be tds rate duducate

  41. G krishna mohan says:

    i want to know whether income tax is paid on lime stone royalty permit. if payable at what rate

  42. Shashikant Mirji says:

    No response to my query

  43. Mr Shashikant A.Mirji says:

    is there any threshold for TDS on transport. Suppose I pay Rs 500/- as Transport charges and the transporter does not submit his PAN. Do I have to deduct Rs 5/- and pay to the credit of Central Govenment since the Threshold limits are not mentioned for Transport Payment whereas the same have been mentioned in all other cases in the chart above.
    Mirji

  44. In TDS return you have to mention name ,PAN, and address of the transporter, Transport paid etc. There is no separate statement as such specified.

  45. ashok says:

    After October There is no TDS to Tranporters if PAN provided. But statement should be filed. What type of statement should be filed can u clarify?

  46. TDs need to be deducted on Payment to Trust if they do not have No deduction certificate. Rate of TDs on trusts are the same as is on individuals.

  47. In My opinion Surcharge and cess should not be added.

  48. TDS need not be deducted on transportation charges if transporter has furnished his PAN No.

  49. Rajesh Prajapati says:

    We have to make payment to TRUST.While making payment to trust TDS ti be deducted u/s 194C.There is no exemption certificate.Whether Trust is covered under Individual or udner Company/firm?

  50. Rajesh Prajapati says:

    I have not received reply for FAQ posted on 30/10/2009.

  51. Rajesh Prajapati says:

    We are running business in india as well as offshore.We have to make payment to offshore for agent commission or for rental of equipment to the vendor in the capacity of individual or company.While making payment we have to deduct TDS if services provided in India.As per DTAA there is TDS rate is 10% only.As per Indian I.T.Act Cess and Surcharge is applicable if turnover exceeds 10 lakh / 1 Crore in case of individuals/company.Whether TDS to be deducted only 10 % and Cess + Surcharge to be added or not?

  52. Rajesh Prajapati says:

    Ours is a business engaged in manufacturing of transmission line towers as steel structures as well as supply of transmision line tower and rural electrification activity.
    As per new TDS rates w.e.f.01.10.2009 TDS to be deducted by us on bills raised by transporters for freight ?

  53. KASHI PRASAD SHARMA says:

    if the transportar are not supply PAN NO. than what is the rate are applicable

  54. kalyan says:

    IS surcharge on TDS to be deducted for the interest payment to the domestic company? If their total income exeeds 10million? If we havent deduct surcharge for the interest payment would the authorities penalise us

  55. kalyan says:

    Surcharge on TDS is to be deducted if the domestic company’s income more than 10million as per the revised TDS rate from 1st oct 09

  56. No. Surcharge on TDS is applicable on on Salary payable by company to its employees.

  57. Rajesh Prajapati says:

    Whether Surcharge in case of Company is applicable if the turnover of the company exceed 10 million and 1 million in case of Individual while deduction of TDS?

  58. Raj Khandelwal says:

    Sardar Sarovar Narmada Nigam Ltd.
    are interest exmpted hay ya nahi

  59. k m narasimha murthy says:

    TDS on Server Rent, in my opinion, is covered under Article 12 of DTA between India and US and not under Article 7. Therefore, Tax at applicable rates has to be deducted. Section 9 of the Income Tax Act is very clear, Royalty / Fee for Technical Services are deemed to be accrue or arise in India, if the same is utilised in India. In view of the above provisions, TDS is applicable on Server rent paid.

  60. i want to know that is new rate of TDS applicable or not in following case?

    transporter invoice is received on 3rd october 2009 for transport charges in the month of september & payment is also made in the month of October 2009. Transporter have a PAN also.

    in that case how much TDS to be deducted.

  61. TDs is applicable.

  62. S.MOHAN says:

    Please let us know whether TDS is deductible for hire of car/van for office use.

  63. CA Dinesh Vijay says:

    The two categories, viz., contractors and sub-cntractors have been merged into single category, i.e. CONTRACTORS and the TDS rate is 1% for ind. and huf and 2% for the remaining.

  64. Richard says:

    Above mentioned INTEREST from banking company denotes Interest from saving account or from fixed deposit or from both??

  65. Chandra Sekhara Rao V says:

    Dear Sir

    I am working in a IMFL Manufacturing unit in accounts dept.
    1. While making slae of IFML we r charging TCS+S.Charge+Cess.
    2.Deducting TDS towrds freight charges from Transporters .
    We heared that with effect from 1st Sept’09 there is no S.Charge and Cess and no TDS for transporters from 1st oct’09.I am greatful if u clarify the same and provide any supporting papers/link to follow the same at the earliest.

    Regards
    Sekhar

  66. Esteyak says:

    we billing the clints of Rs.100000 plus Service tax @ 10.3%,the Clints paid us Rs.50000 on A/c.
    what was the service tax collected amount if client deducte TDS @ 2.06 in earlier bills

  67. Niranjan Singh says:

    It is mentioned that NIL TDS is applicable if “transporter quotes his PAN” – Pls illustrate, if payment is made in cash and paid to the driver on behalf of the transporter.

  68. Manish Pandey says:

    “The nil rate will be applicable if the transporter quotes his PAN.”

    please describe this sentence in detail and what TDS rate apply for contractor’s payment?

  69. Pritesh Jain says:

    TDS now is without E.cess & Surcharge.,

    Will for Payee TDS made by deductor be deducted from IT Payable
    1.Incl sur & Cess
    2.Excl sur & Cess

    Pls Clarify

  70. Pritesh Jain says:

    Contractor / Sub-contractor in transport business ( If PAN not Quoted) – The Rate of TDS is 20%. Pls check n Clarify

  71. satish jangra says:

    If expenses bill upto 30.09.09 is booked in the m/o Nov-09, then what TDS rate is applicable? Old or new TDS rates

  72. If you haven’t made the payment of same before 01.10.2009 and booking the bill after 01.10.2009 then you can deduct TDS at new rate. But to avoid any litigation I suggest you to deduct at old rates.

  73. K.Raaghavan says:

    If expenses bill upto 30.09.09 is booked in the m/o Nov-09, then what TDS rate is applicable? Old or new TDS rates?

  74. There are no penal provision for extra deduction of TDS or for deduction of TDS when it is not applicable.

  75. Samik says:

    if any body deduct TDS from Transporter after 1 st oct09 & deposit the same on due date, then what provision are there?

  76. In my opinion rates are correct.

  77. Should I confuse you further? Surcharge and cess are not applicable for the whole A.Y. 2010-11 on TDS and TCS except the TDS on salary.

  78. G.C.Bhura says:

    Tax mentioned in Sl.no.2 & 3 u/s 194A for other entity @20% is wrong.After passing of budget it is 10% for FY 2009-10

  79. Chandra Sekhara Rao V says:

    Dear Sir

    I am working in a IMFL Manufacturing unit in accounts dept.While making slae of IFML we r charging TCS+S.Charge+Cess.Some one is telling with effect from 1st Sept’09 there is no S.Chargeand Cess.I asked my tax people they r telling it is effect from 1st Oct’09.I am greatful if u clarify at the earliest.

    Regards

  80. You discuss with others in your profession and show there certificate to your C.A. Every one have there own interpretation and I cant make him interpret this in accordance with my interpretation.

  81. Rajesh says:

    Hi Sandeep,

    Waiting for reply

    we are paying server rent to US vendor for providing space on server where at internet website is hosted/placed. Our CA says that Article 7 of US-India DTAA deals with “Business Profits” but we covered under Article 12 relating to “Royalty”.

    Tell me about our TDS / Tax liability on the payment of server RENT to US vendor and other implications of Article 12.

  82. Will not be applicable on TCS too.

  83. Ashish Modi says:

    Please any one can let me know whether surcharge & cess will apllicable for TCS or not?

  84. Ramesh Raj says:

    Is no surcharge & cess applicable also for TCS in budget 2009? reply me the correct answer including notification of budget 2009.

  85. Ajay singh says:

    is form 15I for no TDS has been deducted for a person having not more than 2 vehicles.This provision is still applicable in present.

  86. Rajesh says:

    we are paying server rent to US vendor for providing space on server where at internet website is hosted/placed. Our CA says that Article 7 of US-India DTAA deals with “Business Profits” but we covered under Article 12 relating to “Royalty”.

    Tell me about our TDS / Tax liability on the payment of server RENT to US vendor and other implications of Article 12.

  87. 1. penalty of Rs. 5000 for not filing on time.
    2. You will not be able to carry forward the losses for the same year if you have any.
    3. Interest U/s. 234A if any tax liability is there.
    4. Normally department do not accept return for any assessment year after one year from the end of Assessment year unless it issued a notice to Assessee instructing it to file a return for the same A.Y..

  88. PardeepSingh says:

    What are the consequences if retun of AY 05-06 is field after 31.03.07 (i.e after the date of filing belated return) kindly explain indetail

  89. For B i.e. service receiver A is transport operator. He need not go in details to look whether the transport vehicles provided by A are owned by him or not. If A issuing transport bills to B then B can follow New TDS rule applicable from 01.10.2009.

  90. CA NALINI RAY says:

    One assessee ” A ” engaged in transport business got transport contract from the principal ” B ” . ” A ” does not have any vehicle of its own; but engages hired vehicles from the market. If ” A ” submits his PAN to ” B ” i.e his principal, will ” B ” deduct TDS from ” A ” as per the new provisions. Please answer.

  91. Surcharge and cess not applicable on TDS except the TDS on salary.

  92. Please confirm whether TDS/CESS/SURCHARGE need to be deducted OR NOT w.e.f. 01-OCT-2009 in case of interest amount on 8% Savings(Taxable) Bonds( issued by RBI) exceeding the limit of Rs.160000/- (for Male), Rs.190000/-(for Female) and Rs.240000/-(Sr.Citizen) or not. I think this comes u/s-193 of the I.T.Act.

    Your reply will be highly appreciated.

  93. Certificate he will need to take but remittance will be without deducting any tax. In view of terms in Article 7 read with Article 5 of Convention For Avoidance of Double Taxation And Prevention of Fiscal Evasion with respect to Taxes on Income entered into between the Government of the Republic of India and the Government of the USA., on 12.04.1989 vide Notification No. GSR990 (E) Dated 20.12.90 and as corrected by Notification No. GSR342 (E) Dated 12.07.1991 TDS in not deductible No Tax is Deductible on the remittance to US company towards Charges For Bulk Purchase of Domain Name Registration, Server etc if the US company do not have permanent establishment in India.

  94. Ragesh Parameswaran says:

    Rajesh,
    There is a new circular/notification wherein you need to get a certificate from CA before making payment to non resident assessees. Since there is nexus with India, Income Tax that prevails in India is applicable.Please check your DTAA (Double Taxation Avoidance Agreements) that prevails between India and US. If you dont deduct TDS the said expenses will be disallowed and there will attract penal provisions.

    Ragesh Parameswaran

  95. Rajesh says:

    But my CA is not able to provide me certificate that, TDS is not applicable and, i am not able to send payment vai wire transfer to my vender due to this. What should I do.

  96. Still you need not as they are earning in there own country.

  97. Rajesh says:

    Sandeep, But, we are paying from India.

  98. Your vendor is Right. How can Your Ca force you to deduct TDS on Services provided by a Non resident in there Own country. No one in India deducts.

  99. Rajesh says:

    Yes, our vender is in US, but our CA is forcing me to detuct the TDS, while US vender says that he is not involving in Indian Tax laws, so he is not allowing me to detuct TDS.

  100. For all expenses up to 30th September 2009 old rates are applicable. New rates is applicable only from 01.10.2009.

  101. Deepak says:

    I want to know from what date is this rate list applicble??
    I mean whether i should deduct surcharge and cess os of now or will it be abolished from october only….?

  102. If you paying to us vendors then no and if you paying the same to Indian Vendors then TDS is applicable.

  103. Rajesh says:

    Will the TDS is applicable in India on payment made to US dedicated server vendor and how much is applicable.

  104. Dear Ravi,
    Keep commenting. Do let us know in you notice any discrepancy. All the best for future.

  105. Ravi says:

    Yes you are right

  106. Ravi says:

    It has been mentioned Surcharge & Cess are not required for TDS deduction… think its not correct.

    Further the applicability of 20% tax deduction for non-submission of PAN is effective from FY 1st April ’10

Leave a Reply

GET FREE EMAIL UPDATES