Is threshold limit be waited for PAN No

This query is : Open

Ashok (Querist)
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08 July 2010 If transporter does not quote PAN No. & total billing during FY 2010-11 still below 70000, is TDS not applicable to such payment.

Thanks
Ashok Sharma

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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08 July 2010 IF THRESHOLD LIMIT IS NOT CROSSED TDS NOT TO BE DEDUCTED EVEN IF PAN IS NOT PROVIDED.
BUT MAIN QUESTION IS RS.70000/- LIMIT IS WITH EFFECT FROM 01.07.2010 BUT TILL 30.06.2010 IT IS RS.50000/-. SO WHAT SHOULD BE THE ANNUAL LIMIT FOR FY 2010-11?
OTHER EXPERTS VIEW ALSO SOLICITED.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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08 July 2010 Annual limit is Rs. 75,000/-

TDS deductible in the following circumstances:-

1. Single transaction > Rs. 20K(01.04.10-30.06.10)

2. Single transaction > Rs. 30L(01.07.10 - 31.03.11)

3. Total Transaction > Rs. 50K(01.04.10 - 30.06.10)

4. Total Transaction > Rs. 75K(01.04.10 - 31.03.11)

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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08 July 2010 Shyam Ji thanks for correction. The present Annual limit is Rs.75000/- p.a.

Akhil Agrawal

Akhil Agrawal (Expert)
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08 July 2010 In case of transporter if PAN is provided dont deduct TDS in any case from 01.10.2009 as per FA 09.

If he does no furnish PAN -
1% in case of ind/huf & rest 2% till 31.03.2009
For after 01.04.2010 ded - 20%

As far as Threshold limit is concerned....

For 3 months till 30.06.2010 - Rs. 50000
1) Like in April - Rs. 5000
In may - 30000
In June - 10000
No TDS
In July - 20000
In August - 20000
Deduct TDS on Whole 85000

2) In April - 5000
In may - 30000
In June - 20000

Deduct TDS on 55000

In July - 10000 dont deduct TDS
In August - 20000 deduct TDS on (85000-55000)

Other Opinion also required for 2)

Shyam Lal Naik

Shyam Lal Naik (Expert)
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08 July 2010 There are two triggers. 1 Single Transaction >20K and Combined > 50K(Upto 30/06/10). If either condition is satisfied, deduct TDS.

In view of the above, TDS get attracted in May itself in both 1 & 2.

In my view, once TDS is attracted as above, TDS in June and subsequent month gets automatically attracted, if the transaction relates to same contract.

Akhil Agrawal

Akhil Agrawal (Expert)
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08 July 2010 Oh yes i realse my mistake for the single transaction.

But ur Opinion "In my view, once TDS is attracted as above, TDS in June and subsequent month gets automatically attracted, if the transaction relates to same contract." - i think is subjected to Litigation

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