Tds rate

ROHIT (ACCOUNTANT) (52 Points)

29 June 2012

Please tell me How to identify a contractor or a sub contractor.

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TDS Rates Chart for FY 2012-13

Sl. No.

Section Of Act

Nature of Payment in brief

Cut Off Amount

Rate %

01.04.2012

01.07.2012

HUF/IND

Others

192

Salaries

Salary income must be more then exemption limit after deductions.

Average Rate

193

Interest on debentures

2500

5000

194

Deemed dividend

194A

Interest other than Int. on securities (by Bank)

10000

194A

Interest other than Int. on securities (By others)

5000

194B

Lottery / Cross Word Puzzle

10000

194BB

Winnings from Horse Race

5000

194C(1)

Contracts

30000

194C(2)

Sub-contracts/ Advertisements

30000

194D

Insurance Commission

20000

194EE

Payments out of deposits under NSS

2500

194F

Repurchase of units by MF/UTI

1000

194G

Commission on sale of lottery tickets

1000

194H

Commission or Brokerage

5000

194I

Rent (Land & building)

180000

Rent (P & M , Equipment, furniture & fittings)

180000

194J

Professional/Technical charges/Royalty & Non-compete fees

30000

194J(1)(ba)

Any remuneration or commission paid to director of the company(Effective from 1 July 2012)

NIL

194LA

Compensation on acquisition of immovable property

100000

200000

194LLA

Payment on transfer of certain immovable property other than agricultural land (Finance Minister has withdraw TDS on such transaction on 07/05/2012)

(a) INR 50 lakhs in case such property is situated in a specified urban agglomeration; or(b) INR 20 lakhs in case such property is situated in any other area)

withdrawn by Finance Minister on 07/05/2012no tds on such transactions

withdrawn by Finance Minister no no tds on transfer of immovable property

Note:

Yearly Limit u/s 194C:Also where the aggregate of the amounts paid/credited or likely to be paid/credited to Contactor or Sub-contractor exceeds Rs.75,000 during the financial year, TDS has to be made u/s 194C.

TDS at higher rate ie., 20% has to be made if the deductee does not provide PAN to the deductor.(read detail u/s 206AA)

No TDS on Goods Transport :No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages on furnishing of his Permanent Account Number, to the person paying or crediting such sum.(read details here No TDS on Goods Transport )

Surcharge on Income-tax is not deductible/collectible at source in case of individual/ HUF /Firm/ AOP / BOI/Domestic Company in respect of payment of income other than salary.

In the case of Company other than Domestic Company, the rate of surcharge is @ 2.5% of Income-tax, where the income or the aggregate of such income paid or likely to be paid exceeds Rs.1,00,00,000.

NoCess on payment made to resident:Education Cess is not deductible/collectible at source in case of resident Individual/HUF/Firm/ AOP/ BOI/ Domestic Company in respect of payment of income other than salary.Education Cess @ 2% plus secondary & Higher Education Cess @ 1% is deductible at source in case of non-residents and foreign company.

TCS (Tax Collection at Source Rates FY 2012-13)

Sl.No.	Nature of Goods	Rates in %
1	Alcoholic liquor for human Consumption	1
2	Tendu leaves	5
3	Timber obtained under forest lease	2.5
4	Timber obtained by any mode other than a forest lease	2.5
5	Any other forest produce not being timber or tendu leaves	2.5
6	Scrap	1
7	Parking lot	2
8	Toll plaza	2
9	Mining & Quarrying	2
10	Minerals, being coal or lignite or iron ore	1 wef 01.07.2012
11	Bullion or jewellery (if the sale consideration is paid in cash exceeding INR 5 lakhs in jewelleryand two lakh in case of Bullion)	1 wef 01.07.2012