There has been major changes with regard to surcharge, education cess, SHEC, after approval of the finance (No. 2) ACT, 2009. I have received so many queries about surcharge and education cess rates and applicability for A.Y. 2010-2011. I classified this article so that everyone can understand in a very simple manner.
All rates applicable w.e.f. 1-4-2009 in my view, although finance (No.2) Act approval date is 19th, Aug 2009.
Surcharge on Income Tax: -
Surcharge on income-tax for the assessment years 2009-2010 and 2010-11 will be as follows : -
| A.Y. 2009-10 | A.Y. 2010-11 | |
| Individual/HUF/AOP/BOI if net income does not exceed Rs. 10 Lakh | NIL | NIL |
| Individual/HUF/AOP/BOI if net income exceeds Rs. 10 Lakh | 10% | NIL |
| Artificial Juridical Person | 10% | NIL |
| Co-operative society, local authority | NIL | NIL |
| Firm if net income does not exceed Rs. 1 Crore | NIL | NIL |
| Firm if net income exceed Rs 1 Crore | 10% | NIL |
| Domestic company if net income doews not exceed Rs. 1 Crore | NIL | NIL |
| Domestic company if net income exceeds Rs. 1 Crore | 10% | 10% |
| Foreign Company if net income does not exceed Rs. 1 Crore | NIL | NIL |
| Foreign Company if net income exceeds Rs. 1 Crore | 2.5% | 2.5% |
Surcharge, Education Cess in the case of TDS – For the F.Y. 2009-10, A.Y. 2010-11 (See TDS Calculator for A.Y. 2010-2011)
| Nature of Payment | Whether surcharge is applicable | Whether education cess @ 2% and SHEC @ 1% is applicable |
| Salary to a Resident or Non – Resident | NO | Yes |
| Payment other than salary to a resident | NO | NO |
| Payment other than salary to a non-resident not being foreign company | NO | YES |
| Payment other than salary to a foreign company (payment or credit subject to TDS does not exceed Rs. 1 Crore | NO | Yes |
| Payment other than salary to a foreign company (payment or credit subject to TDS exceeds Rs. 1 Crore) | Yes @ 2.5 of TDS | Yes |
See Also : TDS Rates applicable w.e.f. 1-10-2009
Related posts:
- Surcharge 5% on Haryana VAT from 1 April, 2010
- Now Surcharge @ 10% will be Applicable on Punjab VAT Rates w.e.f. 5-2-2010
- Haryana VAT Notification No. 3/2010 for Surcharge @ 5%
- TDS Calculator for A.Y. 2010-2011 F.Y.2009-2010 w.e.f. 1-10-2009
- TDS Rates Chart A.Y. 2012-13/F.Y. 2011-12 [updated:June 2011]
Sponsored Links
{ 33 comments… read them below or add one }
Thanks you for the information regarding Surcharge & education cess
Q:Why is “Ecess & SHEC” @ 3% continued for “Salary Earners”??
A: Becoz they are “captive BAKRAS” of the GOI,the kamdhenu of the GOI tijori.
What happens to the S.C. and E.Cess collected and paid by TDS deductors to the GOI for the period 01.04.09 to 30.09.2009? Will the GOI refund the same to the DEDUCTORS or to the DEDUCTEES?
Of course,getting a REFUND from any GOI branch is like getting a camel through the eye of the needle.
I want to know in case of transportars if PAN is not quoted 2% TDS will be decuted (w.e.f. 01/10/2009)
1. please clarify were this PAN has to be quoted – on bill or he may provide photocopy of PAN CARD & does not quote PAN on bills
2. Some transportars are plying Trucks but has no Service tax reqisteration
3. Some transportors carry on business with others trucks (they do not have any owned vehicle)
Please clarify, regards
Neeraj
Thank you all tax india team, as they are providing valuable informations
regarding recent amendment on taxation.
KINDLY ADVISE WETHER SURCHARGE/EUCATION CESS AND SHE APPLICABLE ON THE TCS
sir,thanks you for providing the information regarding tds.
Whether EC and SHEC is applicable to service tax with effect from 01.10.2009
I want to know in case of transportars if PAN is not quoted 2% TDS will be decuted (w.e.f. 01/10/2009)
1. please clarify were this PAN has to be quoted – on bill or he may provide photocopy of PAN CARD & does not quote PAN on bills
2. Some transportars are plying Trucks but has no Service tax reqisteration
3. Some transportors carry on business with others trucks (they do not have any owned vehicle)
Kindly advise me whether educationscess is applicable or not for service tax payments.
Please advise whether Edu. Cess and S & H Cess is appliable on Service Tax and Central Excise on and from 01.10.2009
Respected Sir,
Is surcharge also applicable for firms also.
Regards,
Tanuja Gupta
Clarifications were sought regarding levey of surcharge and edn.cess on service tax. Hope this will be clarified with date of application. I do not why this point was not clarified
what would i have to charge as Primary and secondary education cess under service tax ?
what would be rate on service tax as primary and secondary eduction levy ?
What is SHEC in the direct Tax? and it is added with Edcational cess.
I want to know in case of transportars if PAN is not quoted 2% TDS will be decuted (w.e.f. 01/10/2009)
1. please clarify were this PAN has to be quoted – on bill or he may provide photocopy of PAN CARD & does not quote PAN on bills
2. Some transportars are plying Trucks but has no Service tax reqisteration
3. Some transportors carry on business with others trucks (they do not have any owned vehicle)
whether exemption in the form of refund under notification 41/2007 ST, as amended, is restricted only to the basic service tax or inclusive of EC & HEC?
kindly clarify
I WANT TO KNOW THE DEDUCTION RULES OF EDUCATION CESS AND HIGHER EDUCIATION CESS FROM 01/04/09 ?
We are paying a rent of Rs 40,000. What is the net service tax to be paid.?? including surcharge and cess?? is it 10% or 10.3 % from 1.10.2009??
What is the rate of service tax to be paid.?? what are surcharge and cess rates applicable from 1.310.2009. In effect what is the total percedntage?? is it 10% or 10.3%???
What is the present rate of service tax.?? what are surcharge and cess rates applicable from 1.10.2009. In effect what is the total percedntage?? is it 10% or 10.3%???
What is the present rate of service tax.?? what are surcharge and education cess rates applicable from 1.10.2009. In effect what is the total percentage?? is it 10% or 10.3%???
Dear Sir,
Pls clarify that education cess & higher education cess is application on Contratual payment., i.e. 2% or 2.06% is apllicable from 01.10.2009.
Dinesh Bahadur
Kindly let me confirm whether eces & SHECess is applicable on service tax or not
i am a tax deductor . where should i quate PAN of deductee after 01.04.2010
POST 1.10.2009 EFFECT & APPLICABILITY OF EDUCATION CESS & SHEC ON INCOME TAX TDS UNDER VARIOUS HEADS OF EXPENDITURE. SALARY, TRANSPORTAION, RENT ON EQUIPTMENTS, LAND & BUILDING, PROFESSIONAL FEES, PLS CLARIFY
Kindly inform me whether Service tax, education cess & Higher education cess is applicable on TDS? And Education cess & Secondary Higher education cess continues to be applicable on service tax? Also inform me EC & SHEC is applicable on income tax?
Thank you
Kindly inform me whether Service tax, education cess & Higher education cess is applicable on TDS? And Education cess & Secondary Higher education cess continues to be applicable on service tax? Also inform me EC & SHEC is applicable on income tax?
I want information for the same relating to A.Y.2010-2011.
Thank you
Education Cess on Salary is continue or Not for A.Y.2011-12 ?
please help,
thanks in advance
plz send me ……..tds basic theory and sale tax theory………
Whether EC and SHEC is applicable to service tax with effect from 01.10.2009
Other than salary items we should leaved education cess& higher cess
please clarify that whether education cess is applicable to contractor or not. If yes then at what rate.