Surcharge on TDS under Section 194J ?

This query is : Resolved

CMA. Subhash Kumar Jha (Querist)
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30 December 2008 Dear Sir,

We are paying for professional services after deducting tds @ 10.30 %.

Earlier, we had estimated that the total payment during 2008-09 would not exceed Rs. 8.7 Lacs. But now it seems that it might exceed by around 50 thousand by March,08.

The payments were done throughout the year. What should we do now? Will there be any interest implications on our earlier TDS payment ?

Pl reply soon.

Thanks

Subhash Jha

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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30 December 2008 First clarify who is providing profesional services to you i.e. a Prop./partnership/company.

Surcharges will be applicable only if they provide you services more than below amounts as applicable in their case:

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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30 December 2008 1) Individual/HUF/AOP/BOI - Exceeds 10 Lakhs. - Rate 10%

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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30 December 2008 2) Firm/Domestic Company - Exceeds 1 crore - Rate 10%

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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30 December 2008 3) Non Dometic Company - Exceed 1 crore - Rate 2.50%

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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30 December 2008 As per your question abouve you will receive services below 10Lakhs, so no surcharges applicable if the service provider comes in 1st category.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Querist)
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30 December 2008 Dear Sir,

The firm providing the professional consultancy is a Prop. Concern. When i talk about bill exceeding by 50 thousand, it means it will be around 10.50 lacs.

Now can u suggest the reply.

Thanks,

Subhash Jha

SUBRAMANIA SARMA G

SUBRAMANIA SARMA G (Expert)
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31 December 2008 The issue is what is to be done in case one has deducted initially without taking surcharge but requires to be done at a later date. Whenever one find that he has to deduct taxes, he can compute the total liability and deduct the same. Failure to deduct one may land in getting the amount paid disallowed u/s 40(a).

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