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No TAN. No. TDS. Now what?

john (LEARNER) (549 Points)

02 April 2010

Co-op HSG SOC. has contracted a person for society's Complete bldg repair work.

society is not having TAN, SOC. paid around Rs. 6,00,000/- in the previous year to the contractor.

know F.Y. has ended what panelties or interest would the society face on NON deduction of TDS.

PLZ ADVICE

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3 Replies

Ashish Sharma (Service) (1028 Points)
Replied 02 April 2010

Company will face failure to apply TAN Rs.10000/- and the if the TAN applied before sep. 2010 it TDS can be deposited with interest. otherwise expenses will be disallowed.

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soni chauhan (Service) (670 Points)
Replied 02 April 2010

272B. Penalty for failure to comply with the provisions of section 139A. (1) If a person fails to comply with the provisions of section 139A, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees. (2) If a person who is required to quote his permanent account number in any document referred to in clause (c) of sub-section (5) of section 139A, or to intimate such number as required by sub-section (5A) of that section, quotes or intimates a number which is false, and which he either knows or believes to be false or does not believe to be true, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees. (3) No order under sub-section (1) or sub-section (2) shall be passed unless the person on whom the penalty is proposed to be imposed is given an opportunity of being heard in the matter. So, there is a penalty of Rs. 10000/- per party under section 272B of the Income Tax Act on the company if the TDS is return is filed with Incorrect PAN number’s of the party.

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Nilesh Rudrawar (CA Practice) (28 Points)
Replied 02 April 2010

You can apply for TANo. with IT department, take T. A. No. then deposit the TDS amount along with interest @ 1% p. m. on TDS amount & interest shuold be calculated on the month basis.

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