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Tds consolidation

Nikhil (CA) (50 Points)

27 September 2014

Hi...

I am having tax audit of an entity with it branches. While consolidating it is observed that each branch has paid Rs. 20,000/- as professional charge to a person. Having not exceeded treshold limit of Rs. 30,000/- no TDS was made. However the aggregate payment to that person when consolidated exceeded Rs. 30,000/-. In this scenario, should there be any disallowance for this professional payment or make use of treshold limit individually for each branches?

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2 Replies

(Guest)

Hi Nikhil,

It solely depends on the PAN of the branches. Think of it as one time 30,000 limit is available per PAN.

If all the branches have a common PAN (which they most likely would) then you have to take aggregate for 30,000 limit and NOT branch wise.

Regards.

Nikhil (CA) (50 Points)
Replied 27 September 2014

Thank you Bhatt for your reply. But I wonder the practical side on how each Branch Auditors of Banks can collect those data provide to Central Auditors. What they will do is apply the treshold per Branch.