Wrong pan given

Tax queries 463 views 4 replies

X Is proprietor having commission agecy and he is getting commission from company. X is provided PAN of Y and company credited all TDS amount to Y based on PAN given by X. What happens in this case if Y takes objection?

Replies (4)

dear tapse ji,

it is too be check in whose name co. book the commission expenditure. if it is booked in the name of X, TDS is to be deducted of X. PAN given of Y in TDS Return is nt legal and return should be revised and corrections should be made.

This is fault on the part of return filer that he did not check the PAN of X before filing the return. it is an error in TDS Return and should be corrected.

On the other hand, if expenditure booked in the name of Y, hw can you book expenditure and deduct TDS of a  person without his acceptance. It is quite obvious that Y will object on it or it may also be possible he will take the benefit of TDS.

as per my opinion return should be revised.

TDS RETURN SHOULD BE REVISED WITH CORRECT PAN OF mR. x

I agree with you both, but the said PAN is given by X in written, is it not fault of X?

definitely it is fault of X. bt on the other hand, this is fault of return preparer too who did not check the validity of pan holder. PAN is in the name of Y, how could he assign it on the tds of X.

further the form- 16A will be generated in the name of Y by default frm TRACES as the pan was of Y.


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