TRILOCHAN (SENIOR ACCOUNTANT) (698 Points)
24 May 2008hi
all friends
my question is , Bill recd during june 2007 Rs.50000/- as professional charges, but wrongly i deduct the tds @ 5.15% instead of 10.30%..and paid the balance amount of Rs 47425to party. now the account show the nil balance. but our auditor told that you have less deducted.
what is the less deducted amount. ie. 2575 or 2871
pls confirm me and what is its treatment in webtel
thnks
t bhatia
Shreyalmuri
(CA Final)
(236 Points)
Replied 26 May 2008
Hi just check up wheather the transaction is taken place befor June2007 as its before June 1st the rates deducted as TDS by the company @ 5.15% is correct. If the transaction taken place after 01.06.2007 it should be considered for 10%TDS + 2%cess on the same.
Per the Act it should be,
Payment for Professional/Technical Services/Commission/ Brokerage
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From 01.04.2007 to 31.05.2007
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From 01.06.2007 onwards
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Tax Rate 5%
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Tax Rate 10%
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Surcharge 10%
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Surcharge 10% Tax
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Education Cess 3% of the Surcharge
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Education Cess : 3% of Tax & Surcharge
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Overall TDS Rate 5.665% if surcharge is applicable otherwise 5.15%
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Overall TDS rate 11.33% if surcharge is applicable, otherwise 10.30%
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Please go with the above n decide.........
Dilse,
$hreyalmuri...:-)
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