03 April 2016
sub contractor pan card not submitted so I hold 20% amount. after two months he provided pan card and I returned his hold amount. now my doubt is that previous work done amount tds 1% deduct or not.?
03 April 2016
My question is If you didn't want to deduct his tds then why you hold 20% tds amount its not good. You have did right by deduct 20% tds for not having pan. but you can help your contractor by deposited 20% deducted amount to bank by challan and file tds return and in that return you can show that amount in sub contract PAN. so he can claim tds credit against payable and excess amount will be his refund.
03 April 2016
Moreover, you hold 20% tds amount for two months without any reason which track interest payable liability for not deposited amount in bank and give them without deduct even 1% u/s 194C.
CAclubindia
