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TDS OF TRANSPORTER

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)

14 November 2009

P : COMPANY OF PUNE

Q : TRANSPORTER (PROPRIETORSHIP) OF DELHI

R: UNKNOWN PERSON

P : RECEIVES SERVICE OF TRANSPORT FROM Q FOR RS. 30000/-

Q: ISSUED LR IN THE NAME OF XYZ TRANSPOER DULY MENTIONED PAN OF INDIVIDUAL (AS OWNER IS INDIVIDUAL). SO P DO NOT DEDUCTED TDS AS PER NEW RULE AND PAID THE FULL TRANSPORT CHARGES OF RS.30000/- TO Q.

AFTER SOME TIME P REALIZED THAT PAN GIVEN BY Q WHICH IS SUBMITTED IN E-RETURN IS RELATED TO R WHO WAS NEVER MAKE ANY TRANSACTIONS WITH P.

IN THIS MATTER, WHAT TO DO BY P AND ANY LIABILITY WILL COME TO P?

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7 Replies

BISWA RANJAN JATI (Dy. Vice President- Accounts Finance Taxes & Legal) (59 Points)
Replied 14 November 2009

It was the obligation of P to Deduct TDS and deposit it into central treasury and make it sure to Obtain the PAN and verify the same also at it's end. In this case P done a mistake not verify the accuracy of the PAN disclosed to it. Now P have to deposit the TDS and raise a debit note to the party for the amount of TDS.

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varun gupta (Senior Accounts Officer) (89 Points)
Replied 15 November 2009

I agree with BRJ

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
Replied 16 November 2009

Also how P can verify Name of PAN holder is belongs to proprietor of given LR name.? Is it possible?

Jayesh (Accountant) (26 Points)
Replied 16 November 2009

tds applicable to transporter having private limited company

CA SUDHAKAR (CHARTERED ACCOUNTANT) (189 Points)
Replied 16 November 2009

IT IS BETTER TO OBTAIN COPY OF THE PAN CARD, DULY ATTESTED BY THE TRANSPORTER. YOU CAN CHECK THE NAME FOR A PAN AS PER IT DEPARTMENT DATA BASE BY ENTERING THE PAN NO AND OTHER MANDATORY DETAILS AS DUMMY IN A SELF ASST TAX CHALLAN UNDER "E-PAYMENT" PROCESS. ONCE YOU ENTER WITH THE ABOVE DETAILS, AT THE END YOU WILL GET A MESSAGE GIVING THE NAME OF THE PAN CARD HOLDER AS PER DEPARTMENT'S DATA BASE.

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Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
Replied 16 November 2009

Thanks Mr. Sudhakar, but is is possible to verify PAN of each and every Transporter having around 250 transactionper day. Also in the case of proprietorship, how can we verify the name on PAN card holder is proprietor belongs to the submitted LR Name (e.g. LR Name is Laxmi Transport, and the PAN is belongs to Pawan Sharma)