There is doubt about new TDS provisions. For example in case of freight, if truck freight is 18000.00 and truck owner does not provide PAN. What is the TDS provision with respect to this situation
12 May 2010
Dear Aditya ji i am totally disagree with the answer becuase TDS itself is not applicable then how can rate of TDS be applied.Penality in the form of Higher rate of TDS is introduced just to faclitate the process. However if TDS is applicable in the above case then it will be impossible to run the business. However, if you have the reason please explain the provisions in detail so that confusion is cleared.
Aditya Ji just forgot to mention the threshold limit. But he is not wrong. If amount exceeds threshold limit and no PAN is provided rate of TDS will be 20%. Mistake happens so take it sportingly.
As on date for single payment threshold limit is Rs.20000/- and for annually threshold limit is Rs.50000/-. If the limit exceeds it attracts prov of 194c. If pan provided no TDS to be deducted if PAN not provided TDS to be deducted @ 20%.
w.e.f. 01.07.2010 revised Threshold limit for will be Rs.30000/- for single payment and for annual it will be Rs.75000/-.
CAclubindia
