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Surcharge

ysd prasad (Accounts officer) (250 Points)

03 March 2010

Dear experts,

I have a doubts on surcharge can u please clarify me..........

My queries are.....

1. How much surcharge rate today ( for companies.....?, for firms........?, for individuals.......?)

2. When the surcharge will be applicable...? (for companies.....?, for firms............?, for individuals.........?)

3. If we are giving a construction contract to a pvt ltd company then is there any surcharge at the time of deduction of TDS...?

4. Same as query no.3 but incase of Individual in the place of pvt ltd company...?

your answers are valuable for us.......

Thanks in adv.....

PRASAD

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8 Replies

Chintan Shah (-) (534 Points)
Replied 03 March 2010

Dear friend prasad,

Surcharge is applicable only on foreign company (at 2.5%) and on domestic company (at 7.5% for A.Y. 2010-11 and at 10% for A.Y. 2009-10) if their income exceeds Rs. 1 crore. Surcharge is not applicable in any other case.

In respect of TDS, surcharge is applicable only in respect of payment made to a foreign company and not in any other case.

Regards

Chintan

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nikhil.r.gondhalekar (articled assistant) (64 Points)
Replied 03 March 2010

I think A.Y should be substituted with F.Y in above answer

Chintan Shah (-) (534 Points)
Replied 03 March 2010

dear friend nikhil,

Income tax rates (including rates of surcharge) are applicable for Assessment year and not for financial year... TDS rates are applicable for F.Y...

Regards

Chintan

C.Balaji (Learner) (1867 Points)
Replied 03 March 2010

Please see the link.........

https://www.caclubindia.com/forum/may-november-2010-attempts-70395.asp

ysd prasad (Accounts officer) (250 Points)
Replied 04 March 2010

Dear friend Chintan shah......

Thank you 4 ur reply...... also thankful to Balaji for sharing on this topic

but regarding TDS I have some doubts......

1. If we are giving a contract Rs. 1crore above to a private ltd company then we have to deduct TDS including surcharge i.e, 2.266% (194C)...

2. If we are giving a contract Rs. 10 lakhs above to a Individual person then we have to deduct TDS including surcharge i.e, 2.266% (194C)

But the above 2 cases are changed after budget 2009 bcz in budget 2009 there was no cess and surcharge on any TDS PAYMENT ( W.e.f 1st Oct 2009 ) ...........IS ITS RIGHT...???????????

Thank you,

PRASAD