om prakash singh (manager) (29 Points)
03 May 2011Hi, My client has taken civil contract from Irrigation and CAD Department, Govt. of Andhra Pradesh. They are deducting tds @ 2.266% since November'2008, Since tds rate is changed w.e.f 1st october 2009 to 2%, still they are deducting @ 2.266% till date.I want to know, is there any notification or circular for govt. dept. to deduct tds @ 2.266% in stead of 2% ?
Pl. help any one !
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 03 May 2011
as per sec 194c (1)
Rate of TDS
(A) 1 % WHERE THE PAYMENT IS BEING MADE OR CREDIT IS GIVEN TO INDIVIDUAL OR HUF
(B) 2 % WHERE THE PAYMENT IS BEING MADE OR CREDIT IS GIVEN TO ANY OTHER ENTITY
NO SURCHARGE, EDUCATION CESS AND SHEC SHALL BR ADDED, HENCE TDS SHALL BE DEDUCTIABLE AT BASIC RATE,
SO IN MY OPINION, THERE IS NO NEED TO ANY NOTIFICATION,
Harpreet
(* * * * * *)
(1670 Points)
Replied 03 May 2011
i agreed with above two replies and you dont need to worry about that bcoz the govt department deposit your income tax with income tax department.
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