for next financial year TDS on hiring of equipments will come down into 10%? is it true?

Answer 1

YES,

in 194 I -The rate of TDS on payment by way of rent of machinery, plant and equipment which is 15% (if payee is individual) and 20% (in other cases) plus surcharge and education cess as applicable.
However ,in the Budget 2007 the same is proposed to be reduced to 10% plus surcharge and education cess as applicable, irrespective of who the payee is.

Other payments (ie land; or building (including factory building); or land appurtenant to a building (including factory building); or furniture; or fittings,
will continue to be subject to the rate of 15% & 20%

amendment proposed to be effective from 01-06-2007

Answer 2

Previously there was TDS of 15% on hiring of equipment but in the 2007 budget it has been proposed to bring down the rate from 15% to 10%. Except this change all other provisions shall remain the same and presume that these provisions are well known to you

Answer 3

Dear friend,
It is true that TDS on hiring of Equipments will come down into 10% in next financial year 2007-08.
You know that TDS will arise when total payment will exceed 1,20,000 per annum. In financial year 2006-7 TDS rate is applicable in case of Individuals, HUF, BOP,AOP etc. 15% and Surcharges ( total Income exceed 10,00,000 ) if applicable 10% + 2% Eduction cess.
In case of Partnership Firm & Company TDS rate are applicable 20% + 10% Surcharges +2% Education cess, if Payment made exceed Rs. 1,20,000 per annum.if Payment made in case of Hiring for Equipment or Others in financial year 06-07. In financial year 2007-08 TDS rate will 10% on hiring of any Equipments.

In next financial year Education cess will charges @ 3% on total tax liabilities.

Thank you
H.K. Gupta