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TDS @ 20%?

Soumyayan (Service) (72 Points)

25 June 2010

DEAR ALL

OUR CO. IS GOING TO MAKE A PAYMENT OF 24000/- ON ACCOUNT OF ADVERTISING DONE BY A PROPRITORSHIP VENDOR WHO HAS HIS OWN PAN NO. GIVEN IN THE BILL BUT DONOT HAVE THE PAN NO. IN THE NAME OF THE SHOP, SO SHOULD WE DEDUCT TDS @ 20% OR 2%??

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2 Replies

RAJU (LEARNER) (1089 Points)
Replied 25 June 2010

Hi,

A proprietory concern do not have a separate legal entity. So for all purposes, the proprietory concern and the proprietor (Individual) are one and the same. Hence, you can take on record the PAN of the proprietor and deduct tax at 1% (w.e.f. 1-10-2009) and not 2%.

Regards

Dharmaraju

Shudhanshu Agrawal (Business) (2570 Points)
Replied 25 June 2010

As he is the owner of the business and status of the business is properitorship so his PAN no shall be used. Moreover this business income will be added in his own personal ITR thats the reason PAN no the properitor shall be considerd instead of shop.