Tax Deductabel at source
This query is : Resolved
10 January 2009
I am working in pvt ltd company. The company is paying commisson his clients. I want to know what will be the tds rate and how to post the entry
10 January 2009
LIABILITY FOR TAX DEDUCTION
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Any person, not being an individual or a Hindu undivided family, who is responsible for paying, any income by way of commission (not being insurance commission referred to in Section 194D ) or brokerage, shall, deduct income-tax thereon at applicable rates.
PLEASE NOTE:
*
In case of an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under Section 44AB during the financial year immediately preceding the financial year in which such commission or brokerage is credited or paid, shall be liable to deduct income-tax under this section.
*
Commission or brokerage includes any payment received or receivable, directly or indirectly, by a person acting on behalf of another person for services rendered (not being professional services) or for any services in the course of buying or selling of goods or in relation to any transaction relating to any asset, valuable article or thing, not being securities.
*
Professional services means services rendered by a person in the course of carrying on a legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or such other profession as is notified by the Board for the purposes of Section 44AA.
*
Where any income is credited to any account, whether called Suspense account or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly
The tax shall be deducted at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier.
RATE OF TAX DEDUCTION
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10% + Applicable Surcharge + Education Cess @ 2% + SHEC @ 1%
PLEASE NOTE:
* The rates of Surcharge so applicable are as under:
Payee being Individual, HUF, AOP, BOI, whether incorporated or not;
10% of such tax where the income or the aggregate of such income paid or likely to be paid and subject to the deduction exceeds Rs. 10,00,000.
Payee being Co-operative Society
NIL
Payee being a Firm or a Company
10% of such tax where the income or the aggregate of such income paid or likely to be paid and subject to the deduction exceeds Rs. 10,00,000.
Payee being Artificial Juridical Person.
10% of such tax.
Copyscape
Any person, not being an individual or a Hindu undivided family, who is responsible for paying, any income by way of commission (not being insurance commission referred to in Section 194D ) or brokerage, shall, deduct income-tax thereon at applicable rates.
PLEASE NOTE:
*
In case of an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under Section 44AB during the financial year immediately preceding the financial year in which such commission or brokerage is credited or paid, shall be liable to deduct income-tax under this section.
*
Commission or brokerage includes any payment received or receivable, directly or indirectly, by a person acting on behalf of another person for services rendered (not being professional services) or for any services in the course of buying or selling of goods or in relation to any transaction relating to any asset, valuable article or thing, not being securities.
*
Professional services means services rendered by a person in the course of carrying on a legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or such other profession as is notified by the Board for the purposes of Section 44AA.
*
Where any income is credited to any account, whether called Suspense account or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly
The tax shall be deducted at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier.
RATE OF TAX DEDUCTION
Copyscape
10% + Applicable Surcharge + Education Cess @ 2% + SHEC @ 1%
PLEASE NOTE:
* The rates of Surcharge so applicable are as under:
Payee being Individual, HUF, AOP, BOI, whether incorporated or not;
10% of such tax where the income or the aggregate of such income paid or likely to be paid and subject to the deduction exceeds Rs. 10,00,000.
Payee being Co-operative Society
NIL
Payee being a Firm or a Company
10% of such tax where the income or the aggregate of such income paid or likely to be paid and subject to the deduction exceeds Rs. 10,00,000.
Payee being Artificial Juridical Person.
10% of such tax.
10 January 2009
RATE OF TDS 10 % + CESS @ 2% OF TAX
SHE @ 1% OF TAX
IF INCOME ABOVE 10 LKHS THEN S.CHG ALSO HAVE TO BE ADDED
SO THE EFFECTIVE RATE FOR INCOME < 10 LKHS IS 10.3%
CHANDRAKANT AMBANI
BOMBAY
9819408963
9821240674
SHE @ 1% OF TAX
IF INCOME ABOVE 10 LKHS THEN S.CHG ALSO HAVE TO BE ADDED
SO THE EFFECTIVE RATE FOR INCOME < 10 LKHS IS 10.3%
CHANDRAKANT AMBANI
BOMBAY
9819408963
9821240674
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10 January 2009
if income is more than 10 Lkhs and TDS rate is calculated 10.3% than what will be the entries should be given in tally
26 January 2009
ENTRIES IN TALLY WILL NOT CHANGE IN ANY WAY AS S.CHG ALSO FORMS PART OF TAX / TDS FOR THE DEDUCTOR / DEDUCTEE
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