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Tds disaster

13 December 2013

I have a pvt ltd firm I had a contract with a software professional for 150000 for 3 months work. The contract was executed successfully and I made him full payment. But later I realized that I need to deduct Tds needs to be deducted. I asked him for pan but he refused. I also offered to pay tds amount from my pocket but he did not bulge. want can I do here

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13 Replies

Yuvraj Singh (CA FINAL ) (135 Points)
Replied 13 December 2013

Well you needed to deduct TDS @ 10% u/s 194J, but now u will need to deduct TDS @ 20%(as he failed to furnish PAN). Take 150000 as TDS net of tax ( @ 20%) and do backward calc. for computing gross amount on which TDS to be deducted. Deposit TDS with intt ( @ 1% p.m. for late deduction and 1.5% for non deposit of TDS on time, even part of the month (e.g. 1 day delay) would result in whole month's intt.) Regards

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Yogesh Goel (Chartered Accountant) (192 Points)
Replied 13 December 2013

You may try to find PAN of this firm online. Visit mca.gov.in; go in compony master data section, fill company name. You will get date of incorporation here. There after go to website incometaxindiaefiling.gov.in. Visit section - know your pan fill name of comany and date of incorporation here. This is a way to get PAN only. You should however convince the firm to repay you the TDS deposited by you from your pocket..

2 Like

shubhi (article) (131 Points)
Replied 13 December 2013

Yes all of u r rite

KORGAONKAR ASSOCIATIES (pratice) (118 Points)
Replied 14 December 2013

Sir If u hire Professional U taken Invoice for the same In this Invoice Mention Pan No of the Person and If Not than Service Tax No of the Person Please taken Only Pan Portion Of that Service Tax No and Invoice is Must for Business Expenses Claim and Further Any Query Reply the same

Vikas Jain (Student) (80 Points)
Replied 14 December 2013

Dear Yuvraj, the Deductor/ contractee made the full payment. how can he deduct 20% and do bacward calculation?

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Neeraj (student) (44 Points)
Replied 14 December 2013

Agree wid yuvraj... Deposit 20prcnt

Kiran B Chand (Student) (28 Points)
Replied 14 December 2013

(150000 x 100) / 120 will give the figure on which you were to deduct 20%. You may lose Rs. 25000 out of pocket. ie, 125000 + tax @ 20% will be 150000.

Vikas Jain (Student) (80 Points)
Replied 14 December 2013

Yeah, thats correct. Have to pay out of pocket.

Ramanuj (Accountant.) (834 Points)
Replied 14 December 2013

Dear all

If any one not provided pan no. then TDS Deducted 20 %. if you are not TDS Deducted then. Expenses is disallowed.

Thanks

Ramanuj

Karan Teli (Life Is just an Illusion...!!) (4573 Points)
Replied 14 December 2013

U can file it by entering into q dummy pan and move ahead in filing. Once it is filed its department look out...

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CA SACHIN BASAVANT CHAVAN (OFFICE ASSISTANCE) (44 Points)
Replied 14 December 2013

Is there any chances for waiwer of penalty for tds late return filling?

RISHABH Agarwal (Student CA Final ) (21 Points)
Replied 14 December 2013

agree with vikas jain.....when the contract was for 150000 and the invoice might had been raised for 150000 then how backward calculation would be done.....in this case tds would be calculated @ 20% on 1500000