Reg.applicability of COMPANY DEDUCTEE / NON-COMPANY DEDUCTEE

This query is : Resolved

Guest

Guest (Querist)

08 October 2009 A (DEDUCTOR) is an individual.
A pays professional fees to a Firm / Pvt. Company(DEDUCTEES), for which TDS shall apply.
A makes payment through TDS Challan No.281 under CODE NO.0020 - COMPANY DEDUCTEES.

Deductor A deducts TDS on Deductee B's professional fees and uses the above mentioned challan under the code no.0020.

Is it right that B should be called as COMPANY DEDUCTEE ?

Please confirm the understanding.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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09 October 2009 The code 0020(COMPANY DEDUCTEE) shall be used only when the deductee is a company(Public Ltd. Company/Pvt. Ltd. Company).

In all other cases(ie. indivisual/firm/huf etc.), the code shall be 0021.

Prepare separate challans for company deductee and non company deductee.