Withholding Tax Rates (as per ADT)

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raghukumar

raghukumar (Querist)
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21 January 2010 What will be tds rate on interest on foreing co paid by indian co , and it coved under 94a or 94b

CA Prashant Gupta

CA Prashant Gupta (Expert)
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21 January 2010 if interest is paid to foreign co then sec 195 is applicable.
TDS rate is 20.6% (20%+2%EC+1%SHEC) if payment is below 1 crore Rs.
if payment is more than 1 Crore is then rate is 21.115% (20% + 2.5% SC+2% EC +1% SHEC)

Barun Kumar Ghosh

Barun Kumar Ghosh (Expert)
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22 January 2010 Dear Mr Raghukumar,
Will you please clarify what is 94a or 94b?

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RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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25 January 2010 DEAR SIR,

SECTION 94. REFERS TO POWER OF LIMITED COMPANY TO ALTER ITS SHARE CAPITAL.
(1) A limited company having a share capital, may, if so authorised by its articles, alter the conditions of its memorandum as follows, that is to say, it may -

(a) increase its share capital by such amount as it thinks expedient by issuing new shares;

(b) consolidate and divide all or any of its share capital into shares of larger amount than its existing shares;

(c) convert all or any of its fully paid up shares into stock, and reconvert that stock into fully paid up shares of any denomination;

(d) sub-divide its shares, or any of them, into shares of smaller amount than is fixed by the memorandum, so however, that in the sub-division the proportion between the amount paid and the amount, if any, unpaid on each reduced share shall be the same as it was in the case of the share from which the reduced share is derived;

(e) cancel shares which, at the date of the passing of the resolution in that behalf, have not been taken or agreed to be taken by any person, and diminish the amount of its share capital by the amount of the shares so cancelled.

(2) The powers conferred by this section shall be exercised by the company in general meeting and shall not require to be confirmed by the Court.

(3) A cancellation of shares in pursuance of this section shall not be deemed to be a reduction of share capital within the meaning of this Act.

AND

SECTION 94A. Share capital to stand increased where an order is made under section 81(4)

BUT I DID NOT KNOW SECTION 94B

AND NOW PLEASE NOTED THAT:

PARTICULARS NEW TDS RATE IF DEDUCTEE IS

Section Nature of Payment Cut off Amount

Rs.
Individual

& HUF
Others
194A Interest from a Banking Company Rs. 10000/- p.a. 10%
20%

194A Interest other than From a Banking Company Rs. 5000/- p.a. 10%
20%

194C Payment to Sub-Contractors And Payment for Advertising Contracts Rs. 20000/- per

Contract or Rs.

50000/- p.a.
1%
2%

194C Other Contractors Rs. 20000/- per

Contract or Rs.

50000/- p.a.
1%
2%

194C Transport Contractors engaged In the business of playing, hiring or leasing goods carriages NIL IF PAN IS QUOTED

194H Commission or Brokerage Rs. 2500/- p.a 10%

194I Rent other than Plant, Machinery

and Equipments
Rs. 120000/-

p.a.
10%

194I Rent of Plant, Machinery and

Equipments
Rs. 120000/-

p.a.
10%

194J Professional and technical Services Rs. 20000/- p.a. 10%

RAMESH KUMAR VERMA