from which date surcharge & education cess on TDS will not be collected subject to TDS does not exceed 1 crore during Financial year 2009-10 ?
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surcharge & education cess on TDS
Replies (10)
With effect from 1.10.2009
Dear Mr. Monga,
Can you please provide me the source of your information?
TDS rates has been proposed to be changed by Finance Minister in Budget 2009 .Basically following changes has been done in the TDS rates effective from 01.10.2009
- No surcharge and cess on tax deducted on non-salary payments made to resident taxpayers.so now onwards(Tax should be deducted on Basic rate only given in respective section.No education cess or Surcharge is to be deducted except in the case of salary where Tax should be deducted after including the Education cess.Surcharge on individual and HUF assessee has already been abolished for full year fy 2009-10.
- Basic TDS rates for section 194 C (Payment to contractors) and 194I (payment of rent) has been changed (given in table)
- Section 194C has been replaced with new section with less ambiguities.(details in coming post )
- The rate of TDS will be 20 per cent in all cases, if PAN is not quoted by the deductee w.e.f. 1.04.2010
Sirs,
Whether this applies to the Service tax too. Do we need to collect the education cess alongwith the service tax w.e.f. 01-10-2009 or not? Please clarify me sir.
with effect from 01-10-2009
pls send the new tds rate file
Bhanwar Singh Kachawa
| Originally posted by :Bhanwar | ||
| " | pls send the new tds rate file Bhanwar Singh Kachawa |
" |
new TDS Rates ->
NEW TDS RATES FROM 01.10.2009 PROPOSED IN BUDGET 2009 PRESENTED ON 06/07/2009
Particulars
NEW TDS RATES% IF DEDUCTEE IS
Section
Nature of Payment
CUT OFF AMOUNT
INDIVIDUAL and HUF
OTHER
194A
Interest from a Banking Company
Rs. 10,000/- p.a
10.00
194A
Interest other than from a Banking Co.
Rs. 5,000/- p.a
10.00
194C
Payment to sub-contrctor/Advertisement contracts
Rs.20,000/- per contract or Rs. 50,000/- p.a
1.00
2.00
194C
other Contractors
Rs.20,000/- per contract or Rs. 50,000/- p.a
1.00
2.00
194C
transport contractors engaged in the business of plying, hiring or leasing goods carriages.
Nil *
194H
Commission or Brokerage
Rs. 2,500/- p.a
10.00
194I
Rent other than Plant, Mach.& Eqp.
Rs. 1,20,000/- p.a
10.00
194I
Rent of Plant , Machinery & Equipments
Rs. 1,20,000/- p.a
2.00
194J
Professional Charges
Rs.20,000/-p.a
10.00
* The nil rate will be applicable if the transporter quotes his PAN. If PAN is not quoted the rate will be 1% for an individual/ HUF transporter and 2% for other transporters upto 31.3.2010
** The rate of TDS will be 20 per cent in all cases, if PAN is not quoted by the deductee w.e.f. 1.04.2010
No surcharge and cess is to be added from 01.04.2009 on tax deducted on non-salary payments made to resident taxpayers.It means that Surcharges & cess is not be included in basic TDS rates ,while deduction tds , in case of payments to resident person/domestic company only .So in case of payment to Non resident and non -domestic company surcharge and Cess is also to be included while calculating TDS amount .
Please visit Central Excise and Service Tax web-site. https://exciseandservicetax.nic.in/sermon/tariffst1.html
Ashok Monga
cess is not applicable only on TDS right.
When calculating Income Tax should we include cess.
Yes. As per my knowledge you need to include the cess in calculation incomt tax.
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