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Urgent

Priya Sharma (Company Secretary & Student.MBA) (998 Points)

23 July 2010

Our Company is making royalty payment to foreign Company.

We are deducting TDS on the same.My question is do we also need to deduct education cess and SHEC??

Regards

Priya

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6 Replies

CA Adarsh (Job) (82 Points)
Replied 23 July 2010

From Finance Act,2009 TDS will be deducted at flat rate & no education cess & Shec will be applicable.

But, for Payment to Non resident Edu.cess & shec will de deducted.

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Harpreet (* * * * * *) (1670 Points)
Replied 23 July 2010

Edu cess applicable. details for the same are as under:

Form 27Q:

Section	Nature of Payment	Status	Tax (%)

194E	Payment to nonresident sportsmen or sports association		10
195(a)	Income from foreign exchange assets payable to an Indian citizen		20
195(b)	Income by way of long-term capital gain referred to in sec. 115E		10
195(c)	Income by way of Short-term capital gains u/s. 111A		15
195(d)	Income from other long-term capital gains		20
195(e)	Income by way of interest payable by Government/Indian concern on money borrowed or debt incurred by Government or Indian concern in foreign currency		20
195(f)	Royalty payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern after March 31, 1976, where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to section 115A(1A) to the Indian concern or in respect of computer software referred to in the second proviso to section 115(1A), to a person resident in India -
	1.Where the agreement is made before June 1, 1997		30
	2.Where the agreement is made after May 31, 1997 but before June 1, 2005		20
	3.Where the agreement is made on or after June 1, 2005		10
195(g)	Royalty (not being royalty of the nature referred to in (e) sub para) payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to matter included in the industrial policy, the agreement is in accordance with that policy
	1.Where the agreement is made after March 31, 1961 but before April 1, 1976	COMPANY	50
		OTHERS	30
	2.Where the agreement is made after March 31, 1976 but before June 1, 1997		30
	3.Where the agreement is made after May 31, 1997 but before June 1, 1997		20
	4.Where the agreement is made on or after June 1, 2005		10
195(h)	Fee for technical services payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to matter included in the industrial policy, the agreement is in accordance with the policy -
	1.Where the agreement is made after February 29, 1964 but before April 1, 1976	COMPANY	50
		OTHERS	30
	2.Where the agreement is made after March 31, 1976 but before June 1, 1997		30
	3.Where the agreement is made after May 31, 1997 but before June 1, 2005		20
	4.Where the agreement is made on or after June 1, 2005		10
195(i)	Any other income	COMPANY	40
195(i)	Any other income	OTHERS	30
196A	Income in respect of Units of Non-residents		20
196B	Income and Long-term Capital gain from units of an Off shore fund		10
196C	Income and Long-term Capital Gain from Foreign Currency Bonds or shares of indian companies		10
196D	Income of Foreign Institutional Investors for Securities		20
Surcharge ( On Tax)	Applicable for Foreign Companies if payment/credit exceeds Rs.1 crore of such companies		2.5
Education Cess	on Tax deducted Plus Surcharge		3

vivek (CA) (74 Points)
Replied 23 July 2010

Payment to Non resident cess will be deducted

Himanshu (Final Student) (36 Points)
Replied 23 July 2010

yeh subject nahi yeh saza hain...????

Dosto

Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)) (8311 Points)
Replied 23 July 2010

Originally posted by : Adarsh
	From Finance Act,2009 TDS will be deducted at flat rate & no education cess & Shec will be applicable. But, for Payment to Non resident Edu.cess & shec will de deducted.