This query is : Resolved 

Guest (Querist) 08 October 2009

A (DEDUCTOR) is an individual.
A pays professional fees to a Firm / Pvt. Company(DEDUCTEES), for which TDS shall apply.
A makes payment through TDS Challan No.281 under CODE NO.0020 - COMPANY DEDUCTEES.

Deductor A deducts TDS on Deductee B's professional fees and uses the above mentioned challan under the code no.0020.

Is it right that B should be called as COMPANY DEDUCTEE ?

Please confirm the understanding.

Shyam Lal Naik (Expert)
09 October 2009

The code 0020(COMPANY DEDUCTEE) shall be used only when the deductee is a company(Public Ltd. Company/Pvt. Ltd. Company).

In all other cases(ie. indivisual/firm/huf etc.), the code shall be 0021.

Prepare separate challans for company deductee and non company deductee.

ramprasad (Expert)
25 October 2009

The code of 0020 or 0021 is depend up on the deductee status and not on the status of the deductor.

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