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TDS Rates in case of furnishing PAN: Urgent

BINAYAK (Management Consultant) (104 Points)

23 December 2010

the rate of tds in case of non furnishing of PAN for all payments is 20% from 1st April 2010.but can

any one clarify me what will be rate if the deductee furnishes PAN afterwards.

As for instance :

A) I have received a bill on June 2010 from a contractor, The contractor has no PAN with him at that moment (on discussion he was in process of obtaining one) so I deducted TDS @ 1% and deposited the same on 3rd July 2010.

B) Similarly, I have filed my Quarterly e return with the same information writing PANNOTAVBL on PAN section.

Now, the contractor has provided me with his PAN.

In the above case can i revise my e return for the quarter with PAN no of the contractor and avail TDS rate prescribed in the act (ie 1% as i have deducted and deposited in point (A))??????

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6 Replies

ANKUR KUMAR (CA-FINAL) (39 Points)
Replied 23 December 2010

Dear Binayak,

in my opinion

For the Payment related to June,2010 when the contractor had no PAN with him as he had been in the process of obtaining ,,then TDS to be deducted at higher rates.

Also on the PAN Card date of issuance is given on the bottom right in DDMMYYYY format.

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CA. Dashrath Maheshwari (TaXpert) (15108 Points)
Replied 23 December 2010

Check the status of your TDS return at https://onlineservices.tin.nsdl.com/TIN/JSP/tds/linktoUnAuthorizedInput.jsp

and than you will see that your TDS related to PANNOTAVBL has not been "FILED" yet.

The Provisional Receipt also gives a count of ‘PANINVALID’, ‘PANNOTAVBL’ and ‘PANAPPLIED’.

If the quarterly e-TDS/TCS statement uploaded to the TIN central system has any discrepancies/inconsistencies (vis-à-vis the challan uploaded by the Bank) identified in the TIN central system, NSDL shall intimate the deductor about these discrepancies/inconsistencies in the e-TDS/TCS statement by email (if email address is provided in the e-TDS/TCS statement) and by a registered letter.

The deductor/collector shall rectify the e-TDS/TCS statement and furnish a correction statement for the same as per the correction file formats prescribed by ITD

CA. Dashrath Maheshwari (TaXpert) (15108 Points)
Replied 23 December 2010

But now the rules has been changed so other visitors of this forum should not that in case PANs of some of the deductees are not mentioned in your e-TDS/TCS return, the Provisional Receipt will contain the count of missing PANs in the e-TDS/TCS return. You may file the details of missing PANs within seven days of the date of Provisional Receipt to TIN-FC as a corrected e-TDS/TCS return.

CA. Dashrath Maheshwari (TaXpert) (15108 Points)
Replied 23 December 2010

You should affix a label on the e-TDS/TCS CD for identification purpose. You should mention your PAN, TAN, name, Form No., Financial Year and period to which return pertains on the label affixed on the e-TDS/TCS return CD.

BINAYAK (Management Consultant) (104 Points)
Replied 23 December 2010

what will be case if the party already has PAN but he forgot to provide me with the same and he is providing me now. ie the party forgot to provide PAN details with the bill and he is asking me now to revise the e return of Quarter I by providing the details of PAN.

At this situation what will be the rate will it be 20% or same 1% as i have deducted earlier??? Can I revise my e return and escape from the flat deduction of 20% for non furnishing of PAN?????