TDS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 March 2011 Dear Sir/ madam,
I am working in a Private Limited company. We have not deducted the TDS from the rent paid till date. The owner is not ready to give her PAN copy and not allowing us to deduct the TDS. In such case what should we do. Plz help.

Regards
Anitha

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

21 March 2011 If he does not provide the PAN you have deduct TDS @20% otherwise the expenses will be disallowed. So ask him to provide PAN.

Querist : Anonymous

Querist : Anonymous (Querist)

21 March 2011 Dear Mr Sanjay Gupta,
Thank you for your reply.

She is not allowing to deduct and telling us to obsorb that TDS amount. In that case should we pay 20% TDS?

For coming year can we make a new agreement and bifurcate the rent on two family members. Kindly suggest

Upgrade to CAclubindia Pro. Subscribe Now!

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
Follow

21 March 2011 You can also bear the TDS portion by grossing up basis also.

Or if there is no pan then ask with landlord and ask PAN or convey him regarding the higher TDS.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

21 March 2011 Why cant she give her PAN? It will sove the matter. Otherwise you will have to pay the TDS out of your own pocket to avoid dis allowance of the expenditure.

Querist : Anonymous

Querist : Anonymous (Querist)

21 March 2011 Dear Mr. Vivek,
Thank you very much!!!

Regards
Anitha

Querist : Anonymous

Querist : Anonymous (Querist)

21 March 2011 Hi,

I will once again try to convince and try to take the PAN no.
Can we make a new rent agreement and bifurcate the amount among her two family memebers to avoid deducting TDS???
Kindly suggest

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

21 March 2011 Yes you can do this. Pay the rent amount to two different individuals by issuing two different cheques and also dont forget to take the rent receipts in their respective names.

Upgrade to CAclubindia Pro. Subscribe Now!

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
Follow

21 March 2011 See if your land lady may be have money but little knowledge may be stuffed inside her brain.

If she is unwilling to deduct TDS at higher rate you may have to vaccate the premises.

Think practicaly, if she disagree, pay TDS out of your pocket.

Querist : Anonymous

Querist : Anonymous (Querist)

21 March 2011 Thank you Mr.Sanjay Gupta and Mr. Vivek.