15 April 2008
UNDER SEC 194J OF INCOME TAX ACT,TDS @10.3% WILL BE DEDUCTED ON THE ADVOCATES FEES PLUS SERVICE TAX @12.36% CHARGED BY THE ADVOCATES ON THE FEES. R.V.RAO
15 April 2008
YES MR.ARSHAD,IF THE AGGREGATE OF PAYMENT SUBJECT TO TDS EXCEEDS RS. TEN LAKHS ,THEN SURCHARGE OF 10% ON TAX IS ATTRACTED.THANKS FOR POINTING OUT. R.V.RAO
15 April 2008
I think there is some confusion,as per my knowledge ,in case of payment to a firm we need not to check 10 lakh limit .We will have 2 deduct TDS @ 10% plus surcharge 10% plus 3% edu cess ,total comes to 11.33 % ..
15 April 2008
No Mr. Arshad. In the case of making a professional payment, the applicable Basic TDS Rate is 10%. If the payments you are going to make exceeds Rs. 10 Lakhs in a year, then surcharge of 10% will be applicable. In both cases TDS of 3% will be applicable. So the Cumulative rate will be as follows;
1. Without Surcharge : 10.3% (Applicable if the payments in a year to the firm does not exceeds 10 Lakh) 2. WITH SURCHARGE : 11.33% (Applicable if the payments to a firm exceeds 10 Lakh)
For better clarifications you can refer to the Income Tax Act or Reckoner
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