10 February 2008
What is the remedy to a deductor if deductees from the sums paid to whom are ot itimating PAN. Can the duductor be penalised for not quoting the PAN of such deductees. In some cases as noted below the deductee may not be giving his/her PAN - what is the remedy. Is the payer authorised to withhold the future payments.
- Payment of taxable pension to employees retired 3-4 years back.
- Payment to contractors where PAN was not taken earlier
11 February 2008
Under section 272B of income tax act, The Employee / deductor is held responsible for quoting the PAN no of the Deductee. Hence , for not quoting the PAN , the deductor will be penalised
12 February 2008
The position now is that unless you have PANs of atleast 90% of your employees and atleast 70% of the other payees, you would not be in a position to file the e-TDS quarterly returns which are mandatory. Hence, obtaining the PAN of all the persons to whom sums are paid is very important and the its the deductor's look-out as to how to obtain the PAN. He could even withhold payments for want of PAN and he will not be unreasonable in doing so.
CAclubindia
