07 April 2011
if the total payment to this contractor during the whole FY does not exceed Rs. 70000/- then your TDS liability is limited to only one transaction i.e Rs. 40000/-
in that case : TDS would be 1 % (if the contractor is individual or HUF) OR 2% for others.
Interest for late deduction of TDS : 11.2.11 to 10.03.11 > 1 % 11.3.11 to 07.04.11 > 1 %
Just do the calculation & deposit the tax on or before 10/04/11 to avoid 1 more month's interest.
CAclubindia
