Edu. cess (PRIM. EDU. CESS & SEC. AND HR. EDU. CESS
This query is : Resolved
05 October 2009
So many file seen at this site related to TDS rate applicable w.e.f. 1-10-09 with comments that "No surchage or Cess is applicable for TDS w.e.f. 1-10-09, only the specified TDS rates should be considered for deduction applicable for AY 2010-11"
Surcharge is OK but regarding Edu. Cess (2% + 1%) not mentioned in any budget presentation/matter.
Please clarify regarding Ed.cess other than non-salary case applicable or not w.e.f. 1-10-09 ? and source of input.
Regards
Surcharge is OK but regarding Edu. Cess (2% + 1%) not mentioned in any budget presentation/matter.
Please clarify regarding Ed.cess other than non-salary case applicable or not w.e.f. 1-10-09 ? and source of input.
Regards
06 October 2009
Undermentioned provisions are applicable for Financial Year 2009-10 (A.Y. 2010-11) and w.e.f. 01.10.2009.
1. Surcharge:
No Surcharge on TDS in case of payment is made to Resident or Domestic Company
No Surcharge on TDS in case of payment is made to Non Resident other than Foreign Company
2.5% Surcharge on TDS if the recipient is a foreign company and amount exceeds Rs. 1 Crore.
2. Education Cess
No EC or SHEC on TDS in case of payment is made to Resident or Domestic Company [Other than Salary]
3% EC and SHEC (2% + 1%) on TDS in case of Salary
3% EC and SHEC (2% + 1%) on TDS in case of payment is made to Non Resident
Applicability of surcharge is mentioned in Clause (5), (6), (7) and (8) in Chapter II of the Finance (No 2) Act, 2009.
Applicability of Education Cess: Clause (11). Applicability of Secondary and Higher Education Cess: Clause (12).
We have stopped deducting Surcharge /EC wef from 19/8/2009(Date of the finance act,2009) in some cases or from 1/4/2009, as we are planning to take the benefit offered in sec 294 of the Income tax Act in those cases. You are requested to kindly follow 1/10/2009 as that seems to be the general opinion of the crowd
1. Surcharge:
No Surcharge on TDS in case of payment is made to Resident or Domestic Company
No Surcharge on TDS in case of payment is made to Non Resident other than Foreign Company
2.5% Surcharge on TDS if the recipient is a foreign company and amount exceeds Rs. 1 Crore.
2. Education Cess
No EC or SHEC on TDS in case of payment is made to Resident or Domestic Company [Other than Salary]
3% EC and SHEC (2% + 1%) on TDS in case of Salary
3% EC and SHEC (2% + 1%) on TDS in case of payment is made to Non Resident
Applicability of surcharge is mentioned in Clause (5), (6), (7) and (8) in Chapter II of the Finance (No 2) Act, 2009.
Applicability of Education Cess: Clause (11). Applicability of Secondary and Higher Education Cess: Clause (12).
We have stopped deducting Surcharge /EC wef from 19/8/2009(Date of the finance act,2009) in some cases or from 1/4/2009, as we are planning to take the benefit offered in sec 294 of the Income tax Act in those cases. You are requested to kindly follow 1/10/2009 as that seems to be the general opinion of the crowd
06 October 2009
In terms of the Finance(No. 2) Act, 2009, the effective date is 01-04-09[Ref. sub clause 2 of clause 1 of the Finance Act)
A relatively caitious view could be that the provisions are applicable w.e.f. 19-08-09[the date the bill received the assent of the President]
The date : 01-10-09 is devoid of any logic, so far as provisions relating to abolition of surcharge and education cess is concerned.
A relatively caitious view could be that the provisions are applicable w.e.f. 19-08-09[the date the bill received the assent of the President]
The date : 01-10-09 is devoid of any logic, so far as provisions relating to abolition of surcharge and education cess is concerned.
06 October 2009
I M ABSOLUTELY AGREE WITH ABOVE COMMENTS AS NO DATE WAS MENTIONE IN THE BUDGET REGARDING THE APPLICABILITY OF AMENDMENTS,SO IT IS APPLICABLE FROM DATE ON WHICH BUDGET GET THE APPROVAL OF PRESIDENT I.E 19/08/2009.AS U CAN FINDOUT IN VARIOUS OTHER AMENDMENTS IN THE BUDGET IN WHICH DATE IS MENTONED FORM WHICH IT IS APPLICABLE.
06 October 2009
Thanks & regards to all experts
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