When TDS Surcharge is applicable
This query is : Resolved
28 October 2008
Dear Sir,
I want to know when the surcharge @10 % is applicable.
I have not deducted the surcharge @ 10% on TDS on Professional.I have deducted 10.30% instead of 11.33%.As the total payment to the party does not exceed 1 crore.
Please advice!
Regards
Sridhar
I want to know when the surcharge @10 % is applicable.
I have not deducted the surcharge @ 10% on TDS on Professional.I have deducted 10.30% instead of 11.33%.As the total payment to the party does not exceed 1 crore.
Please advice!
Regards
Sridhar
28 October 2008
10.30% is correct in the given situation.
28 October 2008
If the payment is made to an Individual (proprietory concern)and if it exceeds Rs.10 lacs,then surcharge is applicable..then rate would be 11.33%.
If the payment is made to a company or firm and if it exceeds Rs.1 crore,then surcharge is applicable..
so before deducting TDS u should know whether the status of party(individual/company/firm)
If the payment is made to a company or firm and if it exceeds Rs.1 crore,then surcharge is applicable..
so before deducting TDS u should know whether the status of party(individual/company/firm)
28 October 2008
I correct my answer as explained by Shekar. Mistake is regretted.
29 October 2008
But our Auditor is telling that you should deduct 11.33% as the party has to give the confirmation that he has not crossed their Annual Income of Rs 1 Crore and Rs 10 Lakhs respectively for Company and Individual.
Whether Rs 1 crore and Rs 10 lakhs is related to parties annual income or actual payments made to the party during the year.
Please Advice!
But our Auditor is telling that you should deduct 11.33% as the party has to give the confirmation that he has not crossed their Annual Income of Rs 1 Crore and Rs 10 Lakhs respectively for Company and Individual.
Whether Rs 1 crore and Rs 10 lakhs is related to parties annual income or actual payments made to the party during the year.
Please Advice!
29 October 2008
I agree with Mr.Sekhar Points.
you have to deduct once the above mentioned limits are crossed by company/ind as the case may be.
but in practice sometimes(wat sometimes most of the times) you may not know abt the other party receipt details. so for safe side every body will deduct at 11.33% in order to avoid future problems.so you pls advise your client to deduct at 11.33%. however there might be some small parties with whom asseesse might done very less trans n less amt. tat time ok no probs u can deduct at 10.3%.
But advice ur client be in safe side.
you have to deduct once the above mentioned limits are crossed by company/ind as the case may be.
but in practice sometimes(wat sometimes most of the times) you may not know abt the other party receipt details. so for safe side every body will deduct at 11.33% in order to avoid future problems.so you pls advise your client to deduct at 11.33%. however there might be some small parties with whom asseesse might done very less trans n less amt. tat time ok no probs u can deduct at 10.3%.
But advice ur client be in safe side.
29 October 2008
I beg to differ from Mr. Bosu and the auditor's contention that the deductee has to give a confirmation.
Surcharge is applicable, only when payment made by the deductor exceeds the threshhold limit. Surcharge on TDS has nothing to do with the gross receipt or annual income of the deductee. The deductor is no where required to enquire into such details, nor the deductee is required to provide such details.
The auditors contention is annoying. Surcharge is applicable, if payment exceeds the threshhold limit, even if the annual income of the deductee is in the negative.
Surcharge is applicable, only when payment made by the deductor exceeds the threshhold limit. Surcharge on TDS has nothing to do with the gross receipt or annual income of the deductee. The deductor is no where required to enquire into such details, nor the deductee is required to provide such details.
The auditors contention is annoying. Surcharge is applicable, if payment exceeds the threshhold limit, even if the annual income of the deductee is in the negative.
29 October 2008
hi Shyam,
you hav misunderstood my statement.i meant tat the payment made to deductee,exceeds 10 lacs or 1 crore as the case may be you hav to deduct including SC. But sometimes (in big cos) you may not be in the position to know whether payment > 1 crore/10 lacs or not. so normally companies will deduct including SC for not attracting disallowance during Tax audit. and if you are not deducted at present and later you came to know that he exceeded limits then you can deduct past deductable amt from the payable amt
you hav misunderstood my statement.i meant tat the payment made to deductee,exceeds 10 lacs or 1 crore as the case may be you hav to deduct including SC. But sometimes (in big cos) you may not be in the position to know whether payment > 1 crore/10 lacs or not. so normally companies will deduct including SC for not attracting disallowance during Tax audit. and if you are not deducted at present and later you came to know that he exceeded limits then you can deduct past deductable amt from the payable amt
30 October 2008
Yes Mr.Bosu's view is correct.
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