Higher rate tds deduction

This query is : Resolved

Harshavardhan (Querist)
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26 August 2011 Dear Experts

Freight payment exempted from TDS if PAN available.. Some of Lorry owner don't have pan yet. In this case we are liable to deducted 20% higher rate TDS from them.. If we are deducted how to account in books and how remit in govt a/c please advice

Thx & Rgs

Harsha

Tushar Desai

Tushar Desai (Expert)
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26 August 2011 1. In books, You have to show what you have done! Show the amount that you have deducted, be it @ 2%, 10% or 20% whatever.

2. Pay what you have deducted. Just remit the amount to the GOVT that you have collected from the party.

3. This is most important. While filing quarterly TDS Return, there is a column for justifying "Reason for TDS Deducted at Higher Rate". This is where you have to provide the reason for deducting at higher rate than usual rate.