11 September 2012
Respected Sir, A person has to be deducted TDS u/s 194C. But that person has not given PAN number (i think he doesnt have PAN) therefore he has been deducted @ 20% as per section 206AA of Income Tax Act. My doubts are 1) Whether Sec.206AA is a penalty or fine or TDS ? 2) Since PAN number is not quoted we are not able to issue him Form 16A, what can be done best to solve this issue, the client wants Form 16A for TDS deducted. 3) Is it possible to ask the client get a PAN number and revised quarter return be filed there by new Form 16A can be issued for f.y.2012-13? Thanks & Regards, Rajesh
12 September 2012
In my view it is best option to give TDS certificate as you deducted TDS because after getting PAN he can claim the TDS deducted by you by showing TDS certificate.
But if you want to revised then it is also one of the option.
But in my view to avoid delay you have to give TDS certificate according to sec.206AA. I found the information here... http://www.lessmytax.com/tds-payments-contractors-tds-rates/
12 September 2012
1) Deduction u/s 206AA is not a penalty. 2) Without a PAN the client has no use of TDS certificate. To claim credit for the TDS he has to file the return of income and for this he has to obtain a PAN. Therefore No PAN --> No TDS certificate. 3) However when your client get a PAN you can update the same by filing the C5 correction statement and then issue TDS certificate.
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