05 October 2009
Please carify whether we have to deduct tds @ 1% or 2% on the payament made to individual contractor since we are making payment after 01.10.2009 for the bills pertaining to period upto 30.09.2009
Two dates are relevant. 1. date of payment and 2. date of credit. The earlier of the two dates is to be considered for the purpose of deciding the tds rate to be applied. If the amount of the bill is credited after 01.10.09, 1% rate will applicable.
The bill date and / or period of service is not relevant.
CAclubindia
