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Tds deduction

Vishal (Article Asst.) (95 Points)

01 July 2014

Hey guys is it right not to deduct TDS just bcoz contractor is not having PAN number & depositing back deducted TDS to the credit of contractor ?

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3 Replies

(Guest)

No, it is not right. If payments are above the limits of tax deductions, then you must deduct tax. 20%, if PAN is not available. In that case, he (contractor) will not be able to get refund or credit of that tax.

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Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 01 July 2014

it is not correct to refund the tds amount. you should deduct tds @ 20% on such payment.

Vishal (Article Asst.) (95 Points)
Replied 02 July 2014

Thanks a lot guys for your reply but on whose account that amount do we need to deposit ? As the person whose TDS we are deducting is not having PAN ? So ...........