14 April 2014
XYZ Ltd. is having 200 branches and Mr. A who is professional is getting Rs.500 per branch per quarter for a consideration of professional work carried out by him. Payment is not exceeding to threshold limit (i.e. 30000) per branch but if we consider XYZ limited as a whole than total payment will definately exceed to the threshold limit so my question is whether there the TDS liability will be attracted towards the branches? or not?
Here it is provided that every branch is having its own TAN.
14 April 2014
Every Branch must have separate TAN. But the company must have a single PAN. TDS should b deducted, since the branches forms the part of the company. Hence TDS should b deducted on 4L.
14 April 2014
Okey Sandeep sir, but one more clarification regarding this matter is stated below. After refering this just advice me sir, will your answer be same?
(1) Every branch is issuing seperate invoice to Mr.A (a professional) and payment is being done by every branch respectively.
14 April 2014
In this regards no TDS will b deducted. Since it dosen't cross the limit u/s 194J. If the Head Office is making payment regarding all the branches then TDS should b deducted.
14 April 2014
Look Tanak, TDS will b applicable if single bill is raised by the professional(4 for the financial year). And if separate bill is raised on all the branches then TDS will not b applicable. This is the theory.
But in practical life it is almost impossible for u to argue against dept. regarding HO & Branches. So I suggest to deduct TDS u/s 194J. Coz u can't defend urself in the matter of non deduction of TDS. Coz in practicle life branches & HO is a single body.