29 July 2009
dear expert whether education cess wiped out as per 2009 finance bill, what is new rates for Contractor and professional & from which date it will be applicable?
It is not applicable for the limited purpose of TDS. How ever, Edn Cess is very much deductible in cases falling u/s 192B. Further, it is applicable to payment made to non residents.
For professional : - No change in rate. It is 10%(wef 06.07.09).
For Contractor : No Cahnge in rate 2%(wef 06.07.09)
Wef 01.10.09 if the deductee is indivisual/Huf - 1%, in other case 2% & In case of transport contract, nil, if PAN no. provided by the deductee.