Applicability of Surcharge and Education Cess on TDS [Financial Year 2009-2010]

Applicability of Surcharge and Education Cess on TDS [Financial Year 2009-2010]

1.      Surcharge:

No Surcharge on TDS in case of payment is made to Resident or Domestic Company

No Surcharge on TDS in case of payment is made to Non Resident other than Foreign Company

2.5% Surcharge on TDS if the recipient is a foreign company and amount exceeds Rs. 1 Crore.

2.      Education Cess

No EC or SHEC on TDS in case of payment is made to Resident or Domestic Company [Other than Salary]

3% EC and SHEC (2% + 1%) on TDS in case of Salary

3% EC and SHEC (2% + 1%) on TDS in case of payment is made to Non Resident

Authority:  Sub Sections (5), (6) and (7) of Section 2 read with Sub Sections (11) and (12) also read with Part II of First Schedule

See: Chapter 9: Rates of TDS for the Financial Year 2009-2010