TDS U/s 195(6)

This query is : Resolved

Mahadeo Gawas (Querist)
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01 October 2010 Sir,

I have to make payment to foreign company as professional fees (techinical). Party has not furnished his PAN/He has no PAN. Please let me know whether I have to deduct 20 + 3% TDS or 10 + 3% (Payment is less than 1 crore)

Rahul Sharma

Rahul Sharma (Expert)
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01 October 2010 you have to deduct the TDS @20.60% on gross amount and you have also deposit the Service Tax on reverse calculation

Abuzar Azmi

Abuzar Azmi (Expert)
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01 October 2010 Offcourse it is 20 + 3 %

Pls do not make mistake otherwise you ave to pay from your own pocket.

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CA Mukesh Jain S

CA Mukesh Jain S (Expert)
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01 October 2010 I agree with the above people.

You need to deduct @20% + Ecess as per the act

venkatraman shrinivas

venkatraman shrinivas (Expert)
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03 October 2010 206AA has been made mandatory. If the payee does not furnish his PAN, as a punitive measure tax has to be deducted at enhanced rate. Pl. therefore, do not hesitate to deduct tax @ 20% plus attendant levies. If not you will have to bear the brunt of not only he tax difference, but also interest under section 201(1A), which can never be waived.