Can TDS of partners be claimed by partnership firm

Tax planning 1533 views 10 replies

Vivek Agrawal

GST Practitioner

181 Points Posted on 29 September 2011

Hi,

This query comes out of the tax planning - conversion of proprietory business into partnership business

FACT - Two persons carrying the business of civil contract decided, at the end of year, to bring their individual business under partneship firm. They inserted a clause in the deed - "in case partners carry the business of the same nature of firm's business, then the business of partners shall be considered as the business of firm."

By virtue of this clause, the civil contract business carried by partners were considered as the business of firm.

Query - Shall assessing officer consider the business of partners as the business of firm, if yes, shall the tax credit appearing in the partners PAN be transferred to the PAN of firm

Replies (10)

Jayesh

Internal Auditor

214 Points Posted on 29 September 2011

Hi,

Tax credit appearing in the partners PAN wont be transferred to PAN of the firm. Partner will claim such credit in their individual return.

wait for others reply.

ARUN KUMAR

Financial Consultant

992 Points Posted on 29 September 2011

I will Updating it soon..............................

CA Hardik Bunha

self

2121 Points Posted on 02 October 2011

hi my friend,

A.O. could not consider partner business as firm's business during previous year as two persons bring partnership clause at the end of the year.

could not transfer tax credit to firm

HaPpY NaVaRaTri

CA Mukul Mittal

CA in practice

384 Points Posted on 03 October 2011

no, as per IT Act, the partner is a different assessee and a firmis diff. assessee, therefore, not allowed

ALOK KUMAR JHA

STAFF

74 Points Posted on 03 October 2011

NO, TDS OF PARTNERS CAN NOT BE CLAIMED BY PARTNERSHIP FIRM.ANY CLAUSE CAN NOT BE GIVEN IN PARTNERSHIP DEED WITH RETROSPECTIVE EFFECT.

komal sharma

student

72 Points Posted on 05 October 2011

agree with Mukul...

CA BISHAN AGARWAL

Profession

93 Points Posted on 06 October 2011

No TDS of partners can not be transfered in any situation.

U S Sharma

glidor@gmail.com

21068 Points Posted on 06 October 2011

Originally posted by : Madan mohan Das

Hi,
This query comes out of the tax planning - conversion of proprietory business into partnership business
FACT - Two persons carrying the business of civil contract decided, at the end of year, to bring their individual business under partneship firm. They inserted a clause in the deed - "in case partners carry the business of the same nature of firm's business, then the business of partners shall be considered as the business of firm."
By virtue of this clause, the civil contract business carried by partners were considered as the business of firm.

- the partnership deed made at end of year, can not consolidate the projects already in position of individuals prior to the date of deed.

Query - Shall assessing officer consider the business of partners as the business of firm, if yes, shall the tax credit appearing in the partners PAN be transferred to the PAN of firm

- TDS is a PAN based depsit of taxes, and non transferable