TDS of Prior period

[chaganti srinivas]

Dear Sirs, As per the latest Income tax circular, TDS from transporter is nil from 01.10.2009. If the service rendered by transporter is prior to 01.10.2009 and submits the bill after 01.10.2009, is TDS Deductable ? - Please clarify.

AI Summary

TDS Applicability: Payments to Transporters Before Oct 1, 2009, Fall Under Old Rate Per Amended Section 194C A query was raised about the applicability of Tax Deducted at Source (TDS) on payments to transporters for services rendered before October 1, 2009, but billed after this date. The first response clarified that according to the amended Section 194C, the relevant date for TDS is when the payment is credited or made, not when the bill is submitted. If credited or paid before October 1, 2009, the old rate applies; otherwise, the new provision applies. The second response agreed with this interpretation, emphasizing the importance of the credit or payment date.