Deduction of TDS with Charge

[Pradeep Jain]

Dear Sir,

We are engaging contractors who are giving services to us under Individual capacity.

We are not sure at the time of awarding contract that their services will exceed ₹ 1 cr. in one financial year.

Under such circumstances, in case we find in Mar-15 that a particular such contractor has provided services of more than ₹ 100 lacs and therefore we are liable to deduct surcharge @ 10% on TDS.

Our query is that, whether we are required to pay 10% surcharge on entire TDS deducted in the whole financial year (14-15) and pay? Whether it will be treated as default in payment of surcharge (TDS) and do we need to pay interest on delayed payment of surcharge?

Regards

Pradeep

AI Summary

Clarification sought on retroactive 10% TDS surcharge for contractors exceeding 1 crore in FY 2014-15. Interest implications? A query was raised regarding the deduction of TDS and surcharge for contractors providing services under individual capacity. The concern was whether a 10% surcharge on TDS should be applied retroactively if it is discovered by March 2015 that a contractor's services exceeded 1 crore during the financial year 2014-15. The question also inquired if failing to do so would be considered a default, necessitating interest on delayed surcharge payment. The response asked if the issue had been clarified, inviting further communication if needed.