A company has received a bill for Rs.12,500/- from a One Time Transporter. The said transporter does not have PAN. Please inform whether the bill amount attracts TDS or not. If attracted what is the rate of TDS to be deduted.
My opinion is, the question of TDS does not arise due to the fact that the bill amount has not crossed the threshold limits fixed by the department (single bill 30000/- or cumulative billing 75000) during this year.
16 July 2010
Yes. your opinion is correct. since the thershold limit is not crossed,TDS is not applicable even PAN is not avaiable. Only the limit crossed you need to deduct higher rate
16 July 2010
Section 206AA reads as any person entitled to receive any sum or income or amount, on which tax is deductible. On the above sum no tax is deductible hence not liable for TDS deduction.
CAclubindia
