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TDS

PAVAN MAROO (PCC STUDENT) (70 Points)

15 August 2009

If an individual has proprietorship concern liable for audit U/S.44AB, in who's name he should take TAN number......in individual's name or in proprietorship concerns name???

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12 Replies

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 15 August 2009

TDS is generally liable for expenses incurred in business. Hence if TAN is taken in proprietorship firms name it will suffice.

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Krishna Murty (x) (161 Points)
Replied 16 August 2009

I,S.Krishna Murty,Professional Accountant.I am giving my services to my claints on monthly basis. My claints are showing my remunaration as salary in their books of account. So they are not deducting TDS on my remuration, because it is below taxable limit.(i.e Rs.1,60,000.).But in my books of accounts I am showing my income as professional charges received. If the professional charges received morethan Rs.20,000 TDS should be attracted.Kindly clarify Is there any problem in respect of my claint for non deduction of TDS and showing my remunaration as salary.

Kushal (Student) (225 Points)
Replied 16 August 2009

Originally posted by :Krishna Murty
"	I,S.Krishna Murty,Professional Accountant.I am giving my services to my claints on monthly basis. My claints are showing my remunaration as salary in their books of account. So they are not deducting TDS on my remuration, because it is below taxable limit.(i.e Rs.1,60,000.).But in my books of accounts I am showing my income as professional charges received. If the professional charges received morethan Rs.20,000 TDS should be attracted.Kindly clarify Is there any problem in respect of my claint for non deduction of TDS and showing my remunaration as salary.	"

I think its wrong classification by your clients. They are giving you professional charges and not salary income.
I dont think that there is employer-employee relationship in u r case.
SO u r clients have to deduct TDS on payments above Rs. 20,000.

MAHESH (ACCOUNTANT) (823 Points)
Replied 16 August 2009

TDS is generally liable for expenses incurred in business. Hence if TAN is taken in proprietorship firms name it will suffice. I think its wrong classification by your clients. They are giving you professional charges and not salary income.I dont think that there is employer-employee relationship in u r case.SO u r clients have to deduct TDS on payments above Rs. 20,000.

Krishna Murty (x) (161 Points)
Replied 16 August 2009

With reference to my earlier question my claint had given the following clarification.My claint had given appointment letter as salaries employee and every day I am going to my claints office and giving my services as part time employee. with reference to definition of salary any part time payment is also taxable as salary. My claint is also giving form 16 for payment of my remunaration.Now on what basis TDS should be attracted.Kindly clarify.

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ayyappa (CA Final) (81 Points)
Replied 17 August 2009

Then TDS has to be calculated as per sec.192 of the IT act, because you had got appointment letter as salaried employee. Incase of professional charges or services rendered, there will be an agreement or contract should be there between payer and payee.

So, your income has to be treated under salary, eventhough you are a part time employee and rendering professional services.

arpna gupta (article) (38 Points)
Replied 17 August 2009

in reference to pavan's question

In properitery business both PAN & TAN are in the name of the properietor

PAVAN MAROO (PCC STUDENT) (70 Points)
Replied 18 August 2009

But arpna, what do you say about the reply of aditya maheshwari.

arpna gupta (article) (38 Points)
Replied 19 August 2009

You can take in anyone's name but normally it is taken in the name of properietor so that he can use it in more then one business, but if he want to take TAN in the name of the firm he can. Its up to him only.

MAHESH (ACCOUNTANT) (823 Points)
Replied 20 August 2009

TDS has to be calculated as per sec.192 of the IT act, because you had got appointment letter as salaried employee. Incase of professional charges or services rendered, there will be an agreement or contract should be there between payer and payee.So, your income has to be treated under salary, eventhough you are a part time employee and rendering professional services.