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TDS Query regarding rate of deduction

Yeshwanth (Chartered Accountant) (145 Points)

20 July 2010

Rent has been paid by the company for the months Aug 09 to Mar 10, for which tax has not been deducted at source, Now if the expenditure has to be allowed, at which rate the tds to be deducted?. Whether at 20% (or) 10% (or) for aug & sep @ 20% and from oct to mar at 10%?.. Note: TDS entry to be made on 31st march 2010.....

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CA. BIJENDER KR. BANSAL (ACA, B.COM) (8143 Points)
Replied 20 July 2010

TDS to be deducted as per month wise ( i.e as if it is actually deducted)

i.,e Aug to Sept 20%

afterward 10%

Because you are depositing TDS with Interst from date of delay

in case of Aug TDS , Interset will be charged from Sept to month of deposit

In case of Sept , Interest will be charged form Oct to month of deposit.

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CA Adarsh (Job) (82 Points)
Replied 20 July 2010

Originally posted by : Yeshwanth
	Rent has been paid by the company for the months Aug 09 to Mar 10, for which tax has not been deducted at source, Now if the expenditure has to be allowed, at which rate the tds to be deducted?. Whether at 20% (or) 10% (or) for aug & sep @ 20% and from oct to mar at 10%?.. Note: TDS entry to be made on 31st march 2010.....

if TDS for the month of Aug 09 to Feb 10 has not been deducted till Mar'10 then rent for that period will not be allowed and TDS for the month of Mar'10 to be deposited at the rate of 10% before the return filling date,then Rent for the month of Mar'10 will b allowed.

If TDS with interest for the month of Aug 09 to Feb 10 has been deposited after Mar'10, then Exp. will be allowed in the previous year 10-11 not in 09-10.

Harpreet (* * * * * *) (1670 Points)
Replied 20 July 2010

agreed with them...

Yeshwanth (Chartered Accountant) (145 Points)
Replied 20 July 2010

Originally posted by : adarsh raj
	Originally posted by : Yeshwanth Rent has been paid by the company for the months Aug 09 to Mar 10, for which tax has not been deducted at source, Now if the expenditure has to be allowed, at which rate the tds to be deducted?. Whether at 20% (or) 10% (or) for aug & sep @ 20% and from oct to mar at 10%?.. Note: TDS entry to be made on 31st march 2010..... if TDS for the month of Aug 09 to Feb 10 has not been deducted till Mar'10 then rent for that period will not be allowed and TDS for the month of Mar'10 to be deposited at the rate of 10% before the return filling date,then Rent for the month of Mar'10 will b allowed. If TDS with interest for the month of Aug 09 to Feb 10 has been deposited after Mar'10, then Exp. will be allowed in the previous year 10-11 not in 09-10.

I dont agree with this adarsh... refer union budget feb 2010. amendment has been made that if tds has been deducted and remitted before filing of returns, it can be allowed in the normal course, a retrospective effect from AY 2010-11 has been amended.....