Certificate of Exempted TDS Rate

This query is : Resolved

CA.Sachin Gupta (Querist)
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22 August 2008 We deduct TDS on freight against Transporter at reduced rate as per TDS certificate issued by income tax department With the certificate a schedule is enclosed stating expected sum to be paid/credited by the parties to the transporter during the current previous year and each of three immediately succeeding year on the basis of which transporter has been given reduced rate benifit by income tax department.

My query:

Amount disclosed in the certificate for each party by the transporter to income tax department is the limit of freight upto which TDS to be deducted at lower rate? & after that limit TDS to be deducted at normal rate?

Pl. give your opinion ASAP with any reference if any.

Ranjit Ahluwalia

Ranjit Ahluwalia (Expert)
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22 August 2008 Yes after the limit, TDS has to be deducterd at normal rates.

CA.Sachin Gupta

CA.Sachin Gupta (Querist)
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22 August 2008 is there any circular/nitification or any document/writting in support?

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RAJAN GUPTA

RAJAN GUPTA (Expert)
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26 August 2008 The assessee(deductee) can Obtain a certificate of lower rate from assessing officer u/s 197 for TDS u/s 194C after giving application on FORM 13 and for this rule are prescribed under Rule 28AA and as per sub rule 28AA(2), the lower rate certificate will be valid for one financial year for which it has been issued unless withdrawn by the AO .Rule 28AA(2)reproduced hereunder

"(2) The certificate shall be valid for the assessment year to be specified in the certificate, unless it is cancelled by him at any time before the expiry of the specified period. An application for a fresh certificate may be made, if required, after the expiry of the period of validity of the earlier certificate."