Rachit (Analyst) (913 Points)
05 January 2012In case where sec. 206AA is made applicable on account of non-availability of PAN, whether the rate of TDS would be 20% or 20.60% (i.e. 20% + ed.cess)
What would be the scenario in case of foreign remittance to parties without PAN whether the rate would be 20% or 20.60% (i.e. 20% + ed.cess)
Vineet Goyal
(Assistant Manager - Finance & Accounts)
(702 Points)
Replied 05 January 2012
TDS rate would be 20% + surcharge if applicable to Foreign payments + Education cess. 20% is the only basic tds rate.
CA Neil Ganatra
(Partner - Gautam Joshi & Co.)
(871 Points)
Replied 05 January 2012
As amended by Finance Act (no.2), 2009, section 2(11), education cess and higher education cess will not be charged on TDS made from payments made to residents except salary payment. On payments to NRI, it will be applicable.
Vineet Goyal
(Assistant Manager - Finance & Accounts)
(702 Points)
Replied 05 January 2012
I completely agree.
CA SANDESH MAHIPAL
(Practicing in GST and MSME )
(1985 Points)
Replied 05 January 2012
AGREE WITH CA NEIL
TDS RATE WILL BE 20% FLAT BUT IN CASE OF SALARY IT WILL BE 20.6%
CAclubindia
