09 May 2012
We have deducted TDS for contract payment under sec 194c @ 1% and same is already deposited. But there are 10 deductees who doesn't have their pan as well as they are not in contact with us.So there is no possibility of getting their PAN and we have already deucted their TDS @ 1% and same is deposited.Now my concern is that now what to do? Whether we deposit additional TDS and show in TDS return that we have deducted TDS @ 20% for these deductees. Is there any other solution for this??? And we have made cash payment to the these Deductees. Since we have made cash payment is it possible that we show that the payment made to this deductees does not exceed the ceiling limit so we have not deducted TDS and TDS of these deductees which we have already deposited is adjusted among other deductees having pan and we show that we have deducted excess TDS of Deductees having PAN.
09 May 2012
According to Sec 206AA, deductee has to provide PAN to the deductor and if the deductee fails to do so, TDS would be deducted at the rate as specified in the relevant provision of the Act or 20%, whichever is more. Accordingly you had to deduct 20% as deductees had not provided their PAN. Now as PAN is not there, balance TDS has to be deposited and reported in the return.If it is possible to recover from the parties, then it is good otherwise you have to bear the cost of additional TDS.
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