Tax deduction

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MUKESH KUMAR CHOUDHARY

advocate

69 Points Joined November 2012

SIR, contract between two parties one govt(1st party) and other non-govt.(2nd party) to provide services.. 2nd party produced bills. 1st party asked pan no. for the tds deduction. 2nd party provided its proprietor's pan no.(individual) and one cert of CA that Pan no. of prop. and 2nd party is same. on search, it came to knowledge that 2nd party obtained a TAN no. under category - FIRM/AOP/BOI/....... But did not provided PAN NO. of firm/boi/aop/..... should i ask for PAN NO. OF FIRM/AOP/..... OR should i deduct tax @ 2% in case other than individual/huf or @ 1%. 2. status in TAN NO.- firm/aop/boi. Can 2nd party use PAN NO. of individual for tax deduction. 3. certificate o CA is legally valid in this matter specially the said CA is writing himself as PARTNER. in his letter pad

Replies (3)

MUKESH KUMAR CHOUDHARY

advocate

69 Points Joined November 2012

pl answer on urgent basis and also note down SECTION if possibel.

Vikas Gupta

Tax Executive

530 Points Joined July 2012

TAN can be applied by all persons - individual/firm/company/AOP/BOI/Artificial juridical person. If 2nd party as you said is having and running its business on properietorship/HUF TDS u/s 194C (Contractor) is 1%. In any other case it is 2%.

CA who is signing in any letter which showns the status of the organisation as properietorship is writing 'partner' with his name only because the relevant CA is a partner of the auditor's firm. In other words the 2nd party's chief accountant/auditor is a firm and the relevant CA is a partner in that firm.