25 February 2010
The company normally purchases plastic polymers for packing materials on a contract basis from XYZ party. XYZ party has no PAN Card till date and never furnished towards TDS certificate till date. With new rule The Income Tax dept requires complete details of PAN card for availing TDS Certificate, else penalty is levied
Question: how much rate of penalty is a party subject to pay? Is it calculated, say 25% over Income of the party or the total Income slab the party falls?? I request the updated rule of penalty in respect of TDS for not furnishing PAN Card.
25 February 2010
a person whose tax is being deducted at source should furnish his PAN to the deductor. If he fails to do so, he will have to pay a flat 20% TDS.
CAclubindia
