Kazekage Gaara Posted June 24, 2008 Report Share Posted June 24, 2008 Hi guys, Sorry for making this non-gaming related thread, but I wanted to know who decides the TDS, the company ? or the government ? The reason I ask is I work for two identities as of now. One is an American Company in which I have full faith in, and the other is a guy who takes work from another company and gives it to me. He's the middleman. Now the problem is, my company deducts TDS @ 10.3%, but this guy is saying that his company deducts 11.33%, which is a huge difference. Now, is this okay ? Can this happen ? or is the rate of TDS fixed at all places/companies ? I don't trust this guy that much and am not thinking of continuing any longer with him, but I've worked for him for 2 months on trial, and I need to get this thing sorted. Thanx a lot in advance for reading this thread. Desperately waiting for a reply Edit: I'll of course give my CA a call, but wanted to know from apna public what is actually the case Link to comment Share on other sites More sharing options...
MarketTantrik Posted June 24, 2008 Report Share Posted June 24, 2008 If you are under contract, then the TDS applicable is 2.27% and if under a professional service agreement, then its 11.33% Link to comment Share on other sites More sharing options...
DevilsOwn Posted June 24, 2008 Report Share Posted June 24, 2008 the TDS rate depends on : - Country of employement and income generation's - IT rates - your declared investments - as per again the prevailing tax laws so your company might be charging 10.3%, but if your agent is based out of a different place, his company might be charging a different TDS. very much possible. and yes, TDS is decided by the company (though driven by existing tax laws) Link to comment Share on other sites More sharing options...
WhatsInTheName Posted June 24, 2008 Report Share Posted June 24, 2008 In India, TDS rate is decided by the government. This rate is different for different sources of income. e.g. the rate of TDS collected (not "deducted", it causes redundancy because TDS means Tax "Deducted" at Source) by your employer from your salary will be different from the rate of TDS collected by the bank while paying you interest on your deposits (if they are chargeable to tax). So the nature of your relationship with that other guy will decide the TDS rate - whether he is treating you like and employer or a service provider, etc... Also, you want this info according to US laws? Cause the rates and some rules can differ. Link to comment Share on other sites More sharing options...
MarketTantrik Posted June 24, 2008 Report Share Posted June 24, 2008 Going by what KG has stated, the middleman is right to charge 11.33%. Link to comment Share on other sites More sharing options...
WhatsInTheName Posted June 24, 2008 Report Share Posted June 24, 2008 True. Professional Service agreement, as you said. Link to comment Share on other sites More sharing options...
Kazekage Gaara Posted June 24, 2008 Author Report Share Posted June 24, 2008 Going by what KG has stated, the middleman is right to charge 11.33%. Cool. Thanx a lot for the replies guys. Really appreciate the effort Link to comment Share on other sites More sharing options...
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