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Surcharge on TDS

Jay patel (Senior Auditor - Risk & Assurance) (71 Points)

22 August 2009

The question is: Whether Surcharge of 10% is still applicable on the TDS deducted like Ed.Cess and Higher Ed.Cess???? or its Abolished????

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11 Replies

vijay singhal (article) (299 Points)
Replied 22 August 2009

it is not abolished completely .......inform if find info bout it

Ashish M (Chartered Accountant) (2731 Points)
Replied 23 August 2009

SURCHARGE;

As for TDS purposes, no surchage is applicable at all i.e. for TDS, no surcharge at all...............

CESS(edu+SH);

For tax purposes, Edu cess and SHEC is without any modification exists........

As for TDS purposes, Edu cess + SHEC not to be included for deducting TDS in tax rates in any case except on salary..........

Jay patel (Senior Auditor - Risk & Assurance) (71 Points)
Replied 23 August 2009

Originally posted by :Ashish M

SURCHARGE;

"As for TDS purposes, Edu cess + SHEC not to be included for deducting TDS in tax rates in any case except on salary..........??????"

didnt get this SIR...wanna more expln on this particular Qoute of urs... PLs...

For tax purposes, surcharge is abolished for all entities except companies.......that means no surchage is payable by any person except company (domestic =10% and foriegn=2.5%) with the present limits of 1 crore....

As for TDS purposes, no surchage is applicable at all i.e. for TDS, no surcharge at all...............

CESS(edu+SH);
For tax purposes, Edu cess and SHEC is without any modification exists........

As for TDS purposes, Edu cess + SHEC not to be included for deducting TDS in tax rates in any case except on salary..........

MR. R....halpfull hand is back (.) (297 Points)
Replied 24 August 2009

cess is for salary

RITESH KOTHARI (B.COM, FCA, DISA(ICAI)) (778 Points)
Replied 24 August 2009

IF THE DEDUCTEE IS INDIVIDUAL OR HUF THEN NO SURCHARGE IS APPLICABLE.

BUT IN ANY OTHER CASE SURCHARGE IS APPLICABLE @ 10% ON DOMESTIC COMPANIES & 2.5% ON FOREIGN COMPANIES.

REGARDS,

RITESH KOTHARI

CA Madhumita Binani (Executive Accounts (SERVICE)) (389 Points)
Replied 25 August 2009

Refer the following extract from the latest Income Tax Act (after insertion of the Finance (no. 2) Act, 2009):-

"Surcharge is applicable for TDS purposes only when the recipient is a foreign company and payment/credit subject to TDS exceeds Rs. 1 Crore. In no other case, surcharge is applicable at the time of deduction of tax at source.

Education Cess and Secondary and Higher Education Cess are applicable for TDS purposes in the case of tax deduction from payment of salary to a resident or non-resident. Education cess and Secondary and Higher Educatioin Cess are also applicable in the case of payment or credit of any other sum to a non-resident or a foreign company. In no other case, Education Cess and Secondary and Higher Education Cess are apllicable for TDS purposes."

Regards

Madhumita

CA Madhumita Binani (Executive Accounts (SERVICE)) (389 Points)
Replied 25 August 2009

I hope this will certainly help you understand the surcharge clause.....!!

Dhawal Mohnot (Practicing) (449 Points)
Replied 09 February 2010

Can you please clarify if surcharge was applicable for TDS U/s 194j for the AY 08-09.

What is the condition to remmit the TDS along with Surcharge.

Thanks in advance for the guidance.

Pankaj Arora (Learner) (3134 Points)
Replied 10 February 2010

for Deductin TDS Surchase and Cess has completely abolished

Pankaj Arora (Learner) (3134 Points)
Replied 10 February 2010

Surcharge and Cess is applicable only under section 192 for salary

Dhawal Mohnot (Practicing) (449 Points)
Replied 10 February 2010

Boss, I am aware that Surcharge and Cess is not applicable WEF 1 Oct 09. But my question is at the time when it was applicable what was the condition to deduct the surcharge.

Is it that we had to assess the gross taxable income of the deductee?