TDS

This query is : Resolved

CH. Sai Ramadasu (Querist)
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30 October 2009 Dear Sir,

Services availed on renting of equipment for the month of September 2009. The payment was made in the month of October 2009. (Use & pay approach)

I wanted to know what is the TDS rate applicable as the TDS rates effective from October 2009 has been changed.

thanks in anticipation.

Regards

CH. Sai Ramadasu

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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30 October 2009 TDS rate will be 2 % if your have not accounted for the rent before 01.10.09

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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30 October 2009 This is governed by section 194I of The Income tax Act,1961. Hence tax is to be deducted at the time of credit or payment which ever is earlier. Thus if the entry is booked before 1st October, irrespective of the date of payment, old rate will prevail. Otherwise post amended rate has to be applied.

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CH. Sai Ramadasu

CH. Sai Ramadasu (Querist)
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30 October 2009 Dear Sir,

Thanks for your response.

Bill date / payment date which ever is earlier has to be considered?

regards

CH. Sai Ramadasu

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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30 October 2009 Eariler of the two is to be considered

1)Date of entry in your accounts, debiting the expenses and crediting the party

2)Date of payment