*TDS Rate Applicability : Frequently Asked Questions* What is the date when the Finance Bill became Finance Act 2009 ?
- 19-08-2009 In which cases surcharge on TDS rates is NOT applicable ? - On all payment to residents - On all payment to non-corporate non-residents - On all payments to foreign corporate if total payment is less than 1 Crore In which cases surcharge on TDS rates is applicable ? - On all payments to foreign corporate if total payment is more than 1 Crore In which cases Education Cess, Secondary and Higher Education Cess is NOT applicable ? - On all payments to residents except salaries payment In which cases Education Cess, Secondary and Higher Education Cess is applicable ? - On salaries - On all payment to non-residents and foreign companies What is the effective date for above changes in applicability of surcharge and education cess? - These changes are applicable on the passing of Finance Bill . This date is 19-08-2009. However there are different views on applicability date. One view is that since these changes are for the full financial year, one can take benefit of Section 294 of the income tax Act and start applying this rate from the date of presentation of finance bill.(in my view its applicable from 01.04.2009 , same view is given in The Chartered Accountant Journal released by ICAI) - Please ask your tax consultant for more clarifications. Status Payment Surcharge Cess Resident Corporate Other than Salaries N N Resident Non-corporate Other than Salaries N N Resident Non- Corporate Salaries N Y Non-Resident Corporate <= 1 crore N Y Non-Resident Corporate > 1 crore Y Y Non-Resident Non- Corporate N Y There has been change in TDS Rates for 94C- Contractual Payments and 94I- rental payments. What is the effective date for the same ? - These changes are applicable from 01-10-2009. Apart from the above , is there any other change in the TDS Rates ? - Yes. The maximum rate of TDS is normalised to 10% in most cases. Please refer to the TDS Rate Chart for FY 2009-10 (check TDS Rate & downlaod Chart) What about penal rate of 20% where valid PAN is not given ? - This provision is applicable from 01-04-2010. Till such time even if valid PAN is not given , normal rate will be applied. What is your source of above information. - Applicability of surcharge is mentioned in Clause (5), (6), (7) and (8) in Chapter II of the Finance ( No 2) Act , 2009. - Applicability of Education Cess : Clause (11). Applicability of Secondary and Higher Education Cess : Clause (12). भवदीय, दीपेश मेरा स्वप्न "अखंड भारत, समर्थ भारत, प्रभावी भारत" visit us at www.shivajimaharaj.org --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Skorydov MyTaxAssistant Member Group" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/skorydovmytaxassistant?hl=en -~----------~----~----~----~------~----~------~--~---
