19 August 2010
We have made payment towards building rent on which we have deducted TDS @ normal rates. However since the owner of the building is an NRI, he does'nt have a PAN no. Now the question is whether we should invoke penal provisions & start deducting TDS @ 20%...? we have already made 2 months' rent applying the normal TDS rates... What should be done for this...? Please reply...
19 August 2010
yes, in case of non allotment of pan to deductor then strick 20% TDS should be followed by rules.. its better to apply its simple for PAN No. its take 5 to 10 days for PAN.. Apply in 49A in any TIN facilities Center in your area of NSDL or UTI.
20 August 2010
Thanks a lot sir for your prompt reply. One more clarity. If the party does'nt cooperate & we have to deduct TDS @ 20% with retrospective effect from 1.4.2010. WIll we be liable to pay any penal interest on this. If yes, what will be the rate & under which section...?
20 August 2010
Yes you will have to deposit the amount of short deduction along with penal interest @1% p.m. and you will also have to revise you TDS return for the said quarter.
CAclubindia
