206AA

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Rajeev (Querist)
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04 October 2009 The TDS rates of 20% (or higher if provided in the applicable schedule ) in case of NO PAN available (wef 01/04/2010) - my query is why only transporters are charged at 0% TDS if they furnish a pan , why are other contractors not included?

Is the Fm right by levying such exorbitant rates of 20% or higher , cos in some cases a person may not be legally required to have a pan ? Imagine a labourer working for 150 bucks a day, doesnt have any proof (cant remove a pan number ), falling under 194C will now lose 30 bucks a day as taxes ????

Shudnt the Pan provisions be amended before altering the existing TDS provisions making it compulsary for every person in INDIA to have a pan ?

I believe its going to create a havoc for a lot of ppl dealing in unorganised sectors ...whats the whole point of 206AA ?can sumone explain the intention behind 206AA ? or these provisions are just to provide more 75 lakh PAN applications this year to UTI/NSDL ?15G/15H also to become invalid if Pan not provided ?

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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05 October 2009 Hi Rajib,

I am with you. At the same time I have failed to understand how a temporary worker with 150 bucks a day will be subject to tds under sec 194c as he must have received more than 20000 INR on single occation and 5000 INR on yearly basis moreover the payment to labour contactor is subject to tds and not the sum paid to any daily labourer.

Rajeev

Rajeev (Querist)
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05 October 2009 well thats ok sanjayji , but generally we request our clients to enter into a contract / agreement with a yearly contract which exceeds 50000 pa for daily workers as well . its a contractual payment according to us and TDS is deducted . The contract has to be made for some other purposes like insurance etc .

That wasnt the point sir , can u pls try and explain the intention behind 206AA , i am preparing something to write to the ministry .

15I will be valid or no ?

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