Hi,
A client of mine has made a foreign remittance exceeding INR 1 crore during the FY 2014-15 in the nature of Royalty and as per the applicable India USA DTAA has deducted tax at 10% as per the relevant DTAA rate.
The TDS return has however been processed with a default wherein they are adding surcharge and education cess even on the TDS rate.
On calling the helpline we have been told that in FY 2014-15, the CPC is adding surcharge and education cess on DTAA payments also.
Has anyone else come across this issue or has any insight - it'll be very helpful.
Dhruv
CAclubindia
