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urgent pls

Gita Iyer (Specialist) (135 Points)

04 May 2010

I hav a doubt......its said dat surchatge @ 2.5% is to be added in case of other than domestic company if total income exceeds 1 crore rupees.

Here what is the meaning of "income"??

Is it the amount recd. by the foreign company (under the transaction on wh such surcharge is added) or the foreign company's buss. income in india??

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9 Replies

praveen (Chartered Accountant) (6971 Points)
Replied 04 May 2010

Income here means the income taxable in india.

Kranthi Kumar (Industrial Trainee E & Y) (46 Points)
Replied 04 May 2010

For calculating income tax : It is 2.5% if Net total income of the company computed as per provisions of Income tax Act exceeds 1 crore.

For TDS :For the payments made under sections 193, 194, 194A, 194B, 194BB, 194C, 194D, 194E, 194EE, 194F, 194G, 194H, 194-I, 194J, 194LA, 195, 196B, 196C and 196D, Surcharge should be calculated at the rate of two and half percent, in the case of every company other than a domestic company, in case the amount paid/payable during the financial year exceeds one crore. For other cases, no surcharge has to be made.

Do revert if i am wrong some where..

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 04 May 2010

Hi gita..

Its the income earned by foreign companies in india. They are not considered as domestic companies

CA Shiv (Business Controller) (2987 Points)
Replied 04 May 2010

its the total turnover the foreign country in india... if you expect tht it wil go beyond 1 crore than you have to deduct with surcharge.. and if you not sure and the other company is big than for safety side you can deduct more.. no problem in that... Govn dont have problem in more incoming...