Tax deduction at source

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2012 DEAR SIR,
WITH DUE RESPECT, MYSELF BSNL FRANCHISEE/DISTRIBUTOR. ON PURCHASING FROM BSNL LIKE SIM CARDS,RECHARGE COUPONS & ALL OTHER BSNL PRODUCT BSNL DEDUCTING INCOMETAX. WHERE AS IF ANY BSNL PCO HOLDER/PCO FRANCHISEE PURCHASING ANY PRODUT FROM BSNL THEY ARE NOT DEDUCTING INCOME TAX & SAYING THEY ARE EXEMPTED FROM TDS. SIR IS IT FAIR TO DEDUCT TDS FROM US BUT NOT FROM PCO HOLDERS SELLING SAME PRODUCTS AS WE. GIVE ME SUGGESTION AS MY BUSINESS IS SUFFERING A LOT
THANKING U SIR..

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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04 June 2012 TDS is not applicable on sale of SIM Cards, Recarges coupons etc as they are product and you are purchasing and selling the same to the customers.

Ca Anand Dubey

Ca Anand Dubey (Expert)
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04 June 2012 Tds is a deduction which is deducted by payer. In you case you are buying and you are payer then how BSNL can deduct TDS? Please check if they are deducting for commission given to you

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Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2012 dear sir
BSNL DEDUCTING TDS FROM US BUT NOT DEDUCTING TDS FROM PCO HOLDERS ON SAME PRODUCT.
DUE TO THIS OUR SALE IS NOW 30 LACS EARLIA R IT WAS 50 LACS.BSNL SAYING THERE IS GOVT. POLICY NOT TO DEDUCT TDS FROM PCO HOLDERS ONLY

Ca Anand Dubey

Ca Anand Dubey (Expert)
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04 June 2012 BSNL is correct no tds on pco franchisee and if you are not pco franchisee Tds u/s 194H will apply to you

Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2012 sir,
AS PER YOUR REPLY NO TDS ON PCO FRANCHISEE THATS RIGHT. BUT,SIR AS PER MY KNOWLEDE NO TDS ON PCO FRANCHISEE FOR THE CALLS MADE BY CUSTMER FROM PCO & BSNL GIVING COMMISSION TO PCO HOLDERS FOR THE CALLS MADE BY CUSYMER & ON THIS COMMISSION BSNL NOT DEDUCTING TDS. BUT FOR THE OTHER PRODUCTS OF BSNL SAY SIM CARDS-RECHARGE VOUCHER-EASY RECHARGE-INTERNET CONNECTIONS ETC. BSNL NOT DEDUCTING TDS & FROM US AS A BSNL FRANCHISEE THEY ARE DEDUCTING TDS IS IT FAIR SIR,IF THERE IS ANY CLARIFICATION REGARDING THIS PLEASE SEND ME,SIR OUR SALE COMES DOWN TO 30 LAC FROM 50 LAC DUE TO THIS DIFFRENCE & ALSO LOSS OF REVENUE TO GOVT.BECAUSE NO ONE IS DEPOSITING TDS FOR THE SALE OF 20 LACS SOLD BY PCO.
THANKING U.