If an individual under his proprietorship has two concerns, named A & B. as Firm A is earning income from firm B, is TDS is applicable between the firms?
6 Replies
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 08 April 2009
If they are registered as seperate entity and having diffrent PAN then yes.
seema
(Associate Accounts Consultant)
(122 Points)
Replied 08 April 2009
Sir,
these are under an individual proprietor so how could these have different PAN?
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 08 April 2009
Ok. Then you can treat one firm as branch of other so in that case there wont be any tax implications.
Sanjay
(Service)
(47 Points)
Replied 08 April 2009
Dear Seema,
TDS Law says payment made to another person. In your case payment is made to the same person as he is the proprietor of both the firm. Since payment is not made to another person TDS is not applicable.
Sudhir Kumar Kalra
(Taxation Advisor)
(41 Points)
Replied 09 April 2009
| Originally posted by :seema | ||
| " | If an individual under his proprietorship has two concerns, named A & B. as Firm A is earning income from firm B, is TDS is applicable between the firms? | " |
Though there is no tax implication in such a case but as per my view, you should mention what type of income is given by one unit to other? That is very important? And do they have one TAN or two?
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