Charge of Surcharge

Charge of Surcharge

Charge of Surcharge

The Government through parliament may also charge a surcharge on income in addition to income tax. A business can apply the payment surcharge on the basis of the average cost incurred in processing payment by a particular means.

For example, taxi drivers may add a fuel surcharge of $1 when gas prices increase. The cost of some products and services do not include the added surcharge. Instead, the calculated fee will be assessed upon acceptance or purchase of the item and appears in the contract or purchase agreement.

The provisions regarding are as follows –

Where any Act of parliament enacts that a surcharge on income shall be charged for any assessment year at any rate or rates, such surcharged at that rate or those rates shall be charged for that year in respect of the total income of the income year or the years, as the case may be, of every person.

All the provisions of this ordinance relating to charge, assessment, deduction at source, payment in advance, collection, recovery, and refund of income tax shall so far as may be applied to the charge, assessment, deduction at sources, payment in advance collection, recovery and refund of the surcharge.

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