what to do if contractor does not have a PAN & we are liable to deduct tax and what if we deposit it from our pocket on his name
CA Ankit Bhutoria (CA ) (372 Points)
09 January 2010what to do if contractor does not have a PAN & we are liable to deduct tax and what if we deposit it from our pocket on his name
Amir
(Learner)
(4016 Points)
Replied 09 January 2010
Dear Ankit,
AS per new rules If any deductee doesnlt provides his PAN then TDS has to be deducted @ 20%..
U don't have to deposit from ur own pocket, just make the payment after deducting TDS @ 20% if he doesnot provides his PAN
CA CS Amit Borade
(Chief Accountant)
(2828 Points)
Replied 09 January 2010
TDS should be deducted on any payments made to contractor. If he does not have PAN then also we have to deduct it.
If we are depositing out of our pocket, den we can not claim that "tax potion "as expenses of our business.
Bimal Thacker
(Proprietor)
(762 Points)
Replied 09 January 2010
Yes, Amit is right.
Dear Amir 20% is from 1.4.2010
amit jain
(Chartered Accountant)
(532 Points)
Replied 19 January 2010
if pan is not quoted then tds is to be deducted at higher percentage.. there is no need to deposit tax out of own pocket as it is to be deducted from amount paid.
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)
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