1.Separate rates for contractor and subcontractor has been removed.Now the tax rate has been categorised according the status of deductee and new TDS rates for contractors are as under
For payment made to Individual & Hindu undivided family=1 %
For payment to others =2%
Concessional rate of 1 % for advertisement Contracts has been removed and now rates as defined under (1) above is applicable on all type of contractor including Advertisement contracts.
No TDS on payment to transport operator (i.e in the business of playing,hiring or leasing goods carriage),if he/it furnishes his PAN to payer.
No surcharge and cess applicable on basic TDS rate in FY 2009-10 on payments made to resident except salary
Basic limit of 20000 and 50000 per annum remains unchanged.
No tds in case of payment of Job work ,if raw material has not been supplied by the payer.
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