Query on tds-urgent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2013 Dear Experts,

Please advise me on following:-

As per Rent agreement there are 2 co-owner of a building in the ratio of 50:50. And we are paying rent amounting Rs. 60,000/- to them BUT cheque is in the name of "joint name" ie: ABC & DEF.

What would be the consequnces while filing TDS return???

Should i fill PAN/TAN details of Mr. ABC or Mr. DEF or both???

Kindly revert.
Thanks

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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06 August 2013 How can cheque be in Joint names? Identify the entity to which payment is made. Who is raising the bills. If payment made to single entity then limit of Rs 1.80 lacs to be considered. If payment made to two separate entity the limit of Rs 1.80 lacs to be considered for each entity.

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CA Prashant Gupta

CA Prashant Gupta (Expert)
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06 August 2013 first of all, I am hearing first time that there is two names on a single cheque.
it can be possible when this is for firm only. otherwise you can't give two individual a single cheque.

I am leaving this part. you are giving one cheque so it will be assumed that you paid to only one person. So ask PAN of that person only and deduct TDS and in return give name and PAN of that person.

if you want to give two separate name then you must give two cheques with separate names

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Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2013 I am giving here some contents of the agreement for your ready reference.

And my query is bit changed now after gone through the agreement copy.

1) Mrs. ABC & our client is in Rent agreement for Rs. 60,000/- P.m

2) And there is a clasue in the agreement that " our client will pay the payment in the name of "ABC and DEF" only.

3) But agreement was made with Mrs. ABC only as her signature is there in the agreement copy.

Now please guide me.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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06 August 2013 Who's PAN is being provided to you for deduction and deposit of TDS amount?

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CA Prashant Gupta

CA Prashant Gupta (Expert)
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06 August 2013 I think in 2nd condition there is no "and" between ABC and DEF. it must be "or"
anyway if the agreement is between Mrs. ABC then you will get PAN of Mrs. ABC and will deduct TDS on her only
when the agreement is between company and Mrs. ABC then there is no need to check how many landlord you have. just pay Mrs. ABC and deduct TDS on her only

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Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2013 To Sanjay Sir: PAN no. is provided for Mrs. ABC and we are deducting TDS in the name of her only.

To Prashant Sir: only "And" word was there in the agreement anywayz we are already deducting TDS in the name of Mrs. ABC only but i was a bit confused with the joint names only..

Thanks a ton to both of You!

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 August 2013 Cheques can not be issued in Joint names. Can be issued only in the name of Mrs ABC since she is providing her PAN.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2013 Sir, i dont know how but our client is issuing the cheque in Joint names as " ABC and DEF" since April' 2013.

Moreover, agreement was made with Mrs. ABC as per her signatory.

What to do next in this reagrd?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 August 2013 For the time being file the return mentioning PAN of Mrs ABC but get this corrected and payment to be made to Mrs ABC.

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