TDS on payment over to 1 core in FY 2009-10

This query is : Resolved

Rajbir Yadav (Querist)
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19 November 2010 Dear Sirs,

I have received a letter from Income tax for the short deduction,

when I checked we have deducted tds @ 2%
& we have made the payment more than one core to that particular compnay.

& the difference is of surcharge & cess

is the query of Income tax is correct, was the rate of tds for payment over one crore is 2.266%

kindly clarify the same.

CA. Aryendra

CA. Aryendra (Expert)
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19 November 2010 Surcharge : Surcharge is applicable for TDS purposes only when the receipien is foreign company and payment/credit subject to TDS exceed Rs. 1 Crore.

EC & HEC :

Applicable on payment of Salary whether it is resident or non resident
It is also applicable to non resident or a foreign company.

Query of Income Tax Department is not correct.

Tilak Agrawal

Tilak Agrawal (Expert)
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19 November 2010 But if your query relats to period Prior to 1.10.2009 then the Query of IT is Coorect else I agree with Expert Aryendra.

taxindiaconnect

taxindiaconnect (Expert)
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19 November 2010 You should mention the period to which this notice belongs to in your query as rightly replied by Tilak that in the period before 01.10.2009 the SC and EC was applicable to all the TDS deductions where payment made exceeded Rs 1 Crore.