Tds on non resident ( company)

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2012 Dear all,
Plz suggest,
while deducting 20% tds on interest on loan taken from non resident company u/s 195 .
Is education cess is added on 20 % ie. tds will be deducted on 20.60% ?
Plz suggest as early as possible.

Thanks

CA. Hari Kishan

CA. Hari Kishan (Expert)
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16 February 2012 TDS may be deducted @ 20% flat.. do not add cess on the % age of deduction..

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2012 Dear
Plz clarify why education cess is not added on 20%.Because in FA2010, aslo specify that EC & SHEC will be added on tds rate ?

Plz clarify ?
Thanks

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