Ragarding t.d.s.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2012 Hello Sir,

I have to deduct a tax for one of the person who had completed his work on Contract basis. What is the Tax rate which i deduct from his payment. He had completed his work during the Fiancial year 2011-12 but the payment is pending till date.

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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17 April 2012 Section 194c ,income Tax is to be deducted on the amount paid/ credited to the account of contractor at the time of payment or credit to the account of the contractor WHICH EVER IS EARLIER.

Due dates for depositing TDS are
For All months except March-7 days from the end of the month

For March month-April,30

In your case,You might have credited the contractor account during any month of F.Y 2011-12 , so you required to be deducted at the time of credit to the contractor account.

Now deduct&deposit the TDS(with interest 1% Per month /part of month from the date on which such tax was deductible to the date on which such tax is deducted.

And file the returns( 26Q and form no. 27)

CA Kishore Tallam

CA Kishore Tallam (Expert)
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17 April 2012 Agree with expert. Detailedly explained.

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CA PRAVEEN SINGH

CA PRAVEEN SINGH (Expert)
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17 April 2012 YES MUCH DETAIL EXPLAIN BY DILEEP..

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2012 But tell me the tax rate (in %) of T.D.S. i.e. 1% or 10%

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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17 April 2012
One Percent (1%) where payment for a contract are to individuals/HUF.

Two Percent (2%) where payment for a contract are to any other entity.