wiping out of education cess

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asmita parab (Querist)
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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?

Shyam Lal Naik

Shyam Lal Naik (Expert)
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30 July 2009 Education cess still in force.

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.