Education cess on dtaa rates

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 May 2013 ONE OF OUR COMPANY REMIITED TO USA COMPANY BY DEDUCTING TDS 20.6% AND WE FILLED FORM NO 15CA
NOW OUTSIDE COMPANY SAID THE RATE IS 20% NOT 20.6%
HOW WE CAN ADJUST THE PAYMENT
-IN FUTURE REMMITANCE
-CAN WE GET BACK EXCESS CESS
-CAN 20.6 RATE IS OK

Anand

Anand (Expert)
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06 May 2013 If you have used the DTAA rate then 20.6% is wrong. you can file a revised return and use the additional 0.6% against some other TDS liability on foreign remittances.
However, if the foreign company does not have a PAN, then you have deducted at the correct rate of 20.6% u/s 206AA

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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13 June 2013 You are deducting the TDS for the services rendered in India and the rate + ED SC which is applicable for TDS also. So, you have correctly charged the TDS. If the foreign service provider is saying that you have wrongly deducted .06% extra then intimate him that EC is applicable and any rebate as per DTA can b e claimed by him his country.

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