Pls urgent

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Padmavathi (Querist)
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10 July 2013 Hi,suppose one company is deducting TDS on contract @ 1%. To find whether the deductee is firm or company(becoz only for HUF & Ind. it is 1% & for others it is 2%) , i got the pan of deductee.
For Example . Service Bill of Deductee is in XXXX.
Deductee name is YYYYY.
The company deducted TDS in name of YYYY @ 1%(individual rate).
How can i track that XXXX is a sole proprietorship or firm ?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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10 July 2013 u need to see the bills if its company u will coe to know accordingly u deduct tax else he is individual.

Ganeshbabu K

Ganeshbabu K (Expert)
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10 July 2013 As you said ...

You got the PAN of deductee

Just see 4th letter of PAN number

1)if it is "P" it is individual

2)if it is "H" it is HUF

So once refer as above..you can come to know which percentage is required to deductable

And let me tell you there are cases that bill will be in the name of partnership/company and they will provide PAN of individuals in some case..

How to ensure whether payee provider correct PAN or not..

Please fill Self assessment tax challan..

give some what values in pincode,state,and bank and give pan..ONCE YOU SUBMIT

Window shows name of PAN number submitted as per Incometax records..

So if payee provided incorrect PAN you can demand him to provide correct PAN if he failed to do so deduct TDS @ 20%

Example:

CETPK0125G

So here 4th letter is P so he is indivual

Thanks ®ards
Ganesh babu k

Padmavathi

Padmavathi (Querist)
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11 July 2013 ok thanks.

Padmavathi

Padmavathi (Querist)
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11 July 2013 If the business is soleproperitorship will it have the pan no becoz bill is in the name of the business?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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11 July 2013 In that case it will have the pan of owner only.

Ganeshbabu K

Ganeshbabu K (Expert)
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11 July 2013 PAN provided should be in the name of proprietor..

you can verify whether he has provided correct PAN or not with 280 challan as i said above

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