What is TDS and what are the various rates of TDS?
- 2 Answers
- 13670 Views
- IBM, I also Faced
- E-Mail Answers
Answer Posted / mohdtariq20
TDS MEANS TAX DEDUCTED AT SOURCES. THAT MEANS TAX SHOULD BE
DEDUCTED ON THE INCOME OF THE ASSEASSEE AT THE TIME OF
PAYMENT OR AT THE TIME OF CREDIT WHICHEVER IS EARLIER.
THE SAME HAS TO BE DEPOSITED WITH THE GOVT. A/C.ON OR
BEFORE 7TH DAY OF THE NEXT MONTH, OTHERWISE THE
EMPLOYER/DEDUCTOR HAS TO FACE PENALTIES, INTERESTS ETC. AND
TO DEDUCT THIS TDS FROM HIS EMPLOYEES & CONSTOMERS THE
COMPANY SHOULD HAVE THE TAN (TAX DEDUCTION ACCOUNT NUMBER).
THIS IS MANDATORY VIDE INCOME TAX RULES 206C OF INCOME TAX
ACT 1961.THW TDS RATES ARE DIFFERENT FROM EACH OTHER BASED
ON THE NATURE OF TRANSACTIONS & TURNOVER VALUES.
1. The rate of deduction of tax at source w.e.f. 1st April,
2007 are as under :
(i). Payment to Contractors
Tax : 2%
Surcharge : 10% of Tax
Education Cess : 3% of tax and surcharge.
Hence over all rate will be 2.266% if surcharge is
applicable otherwise the rate will be 2.06%.
(ii). Payment to Sub-Contractor
Tax : 1%
Surcharge : 10% of Tax
Education Cess : 3% of Tax & surcharge
Hence over all rate will be 1.133%, if surcharge is
applicable and otherwise it will be 1.03%.
(iii). Payment of interest
A. If paid to a person other than a company
Tax : 10%
Surcharge : 10% of tax
Education Cess : 3% of Tax & Surcharge
Overall TDS rate : 11.33% if surcharge is applicable and
otherwise 10.30%.
B. If paid to a company
Tax : 20%
Surcharge : 10% of Tax
Education Cess : 3% of tax and surcharge
Overall TDS rule : 22.66% if surcharge is applicable and
otherwise 20.60%.
(iv). Payment for Professional/Technical
Services/Commission/ Brokerage
From 01.04.2007 to 31.05.2007
From 01.06.2007 onwards
Tax Rate 5%
Tax Rate 10%
Surcharge 10%
Surcharge 10% Tax
Education Cess 3% of the Surcharge
Education Cess : 3% of Tax & Surcharge
Overall TDS Rate 5.665% if surcharge is applicable
otherwise 5.15%
Overall TDS rate 11.33% if surcharge is applicable,
otherwise 10.30%
(v). Payment of Rent for Land and Building
A. If paid to an individual or HUF
Tax Rate : 15%
Surcharge : 10% of Tax
Education Cess : 3% of tax & surcharge
Overall TDS rate : 16.995% if surcharge is applicable
otherwise
15.45%
B. If paid to a person other than individual or HUF
Tax Rate : 20%
Surcharge : 10% of Tax
Education Cess : 3% of Tax & Surcharge
Overall TDS Rate : 22.66% if surcharge is applicable
otherwise 20.60%
(vi). Payment of Rent for Plant and Machinery
From 01.04.2007 to 31.05.2007
From 01.06.2007 onwards
Tax Rate: 15% if paid to individual or HUF
20% if paid to a person other than Individual and HUF
Tax Rate : 10% for all
Surcharge :10%
Surcharge 10% Tax
Education Cess : 3% of Tax and Surcharge
Education Cess : 3% of Tax & Surcharge
Overall TDS Rate :16.995% or 22.66% if surcharge is
applicable otherwise 15.45% or is 20.60%
Overall TDS rate 11.66% if surcharge is applicable,
otherwise 10.30%
| Is This Answer Correct ? | 27 Yes | 10 No |
Post New Answer View All Answers
how to creat e-vat return in tally
what is period VAT revised return can be filed?
What is cenvat credit?
what is the scope of business taxation in private company?
Dear Sir, we have purchased Poly Covers ( 360mm x 560mm)for raw material use.This Input vat claim it or not ?
Define Amortization & Impairment?
IF a vendors charges WCT @8.75% what is the rate of TDs to be deducted against that? & can we take the Input of it?
While I prepare Form JJ for goods transfer I made a mistake that the value of goods is morethan the actual value(i.e. instead of Rs.92100/- I filed Rs.1354000/-)and the copy of JJ sheet is sealed in the checkpost one copy is taken in the checkpost. please anybody give me the exact solution. thanks
Please guide us about Forms and where is it will use i.e.Form C, Form h, Form F. if other form has please guide us about of that Forms?
hi which form issue again ogs purches & sales ? which is the tax rat we issue c form?it's cst3% is avelabe to issue the c-form?
WHAT IS DEFERRED TAX LIABILITIES.AND WITH EXMPLE DEFERRED TAX ACCOUNTING?
I have some queries about Service Tax, I am working in a Insurance Broking Company. 1) We have raised one bill on 25.04.09 for the services provided by us in the month Mar, 09 Now We received the chq on May, 09 followed in the Month of June,09. When the service tax is actually payable in the month of received of Service tax amount or in the month of services actually provided by us (Mar09) 2) Can we take 100% credit of Service Tax Input paid to those who provided services to us. Suppose Service Tax payable is Rs. 100/- and Service tax charged by the other firms/company Rs. 80/-. The question is That can we deduct Rs. 80/- (already paid). Now Net ST payable would be Rs. 20/- or other percent of service tax input is available 3) What is the rate of interest for Service tax if not paid on time. Pls help me out asap
HOW TO CALCULATE PF, ESI, VAT, SALES TAX ETC.,
if the reparing & machinery maintanance for one party the whole year payment paid rs.75000/- crossed than tds is deducted from amount
What is the eligibility criteria of C-Form(Manufacturing goods of borewell bits, Hammers, Drilling Tools and Air compressors, etc..). If such company will purchase safety shoes, buyer can eligible to issue C-Form?
