Deducting the TDS at the time of payment to the individual service providers

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A company is deducting TDS from payments to individual service providers and remitting it to the government. The query concerns how to proceed when service providers haven't linked their PAN with Aadhaar. It asks whether communication is mandatory, if records need to be kept, and if the company faces default. The advice given is to deduct TDS based on the PAN, applying a higher rate of 20% if necessary, as linking PAN and Aadhaar is the provider's responsibility.

Marimuthu

Marimuthu (Querist)

05 August 2023 Dear Experts,

1 A company is deducting the TDS at the time of payment to the individual service providers.

2 Also the company discharges these TDS liability to the Governement by making the payment.

3 Consequently they have filed the TDS return.

4 The query :
a.Some of the individual service providers not linked their PAN with their Aadhaar.
b.At this scenario, After filing the return , whether we need to mandatorily communicate to them about the non linking of PAN.
C.If yes,Do we need to maintain the record for these communications.
d.Whether the company will get default or not?

5 Pl clarify