Regarding tds

This query is : Resolved

TANK JIGNESH SANJAYBHAI (Querist)
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14 April 2014 XYZ Ltd. is having 200 branches and Mr. A who is professional is getting Rs.500 per branch per quarter for a consideration of professional work carried out by him. Payment is not exceeding to threshold limit (i.e. 30000) per branch but if we consider XYZ limited as a whole than total payment will definately exceed to the threshold limit so my question is whether there the TDS liability will be attracted towards the branches? or not?

Here it is provided that every branch is having its own TAN.

Sandeep Dharar

Sandeep Dharar (Expert)
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14 April 2014 Every Branch must have separate TAN. But the company must have a single PAN. TDS should b deducted, since the branches forms the part of the company. Hence TDS should b deducted on 4L.

TANK JIGNESH SANJAYBHAI

TANK JIGNESH SANJAYBHAI (Querist)
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14 April 2014 Okey Sandeep sir, but one more clarification regarding this matter is stated below. After refering this just advice me sir, will your answer be same?

(1) Every branch is issuing seperate invoice to Mr.A (a professional) and payment is being done by every branch respectively.

Sandeep Dharar

Sandeep Dharar (Expert)
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14 April 2014 In this regards no TDS will b deducted. Since it dosen't cross the limit u/s 194J. If the Head Office is making payment regarding all the branches then TDS should b deducted.

TANK JIGNESH SANJAYBHAI

TANK JIGNESH SANJAYBHAI (Querist)
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14 April 2014 But sir it would not be proper to identify branch and HO to separate entity.

In this case we can conclude that payee will be same in all the cases (XYZ Ltd. in our case) on the basis of PAN.

thus sir will it be proper to clasify branch and HO as a separate entity?

TANK JIGNESH SANJAYBHAI

TANK JIGNESH SANJAYBHAI (Querist)
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14 April 2014 Sir may i get your contact no. i just want to talk with you regarding this matter?

Sandeep Dharar

Sandeep Dharar (Expert)
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14 April 2014 Look Tanak, TDS will b applicable if single bill is raised by the professional(4 for the financial year). And if separate bill is raised on all the branches then TDS will not b applicable. This is the theory.

But in practical life it is almost impossible for u to argue against dept. regarding HO & Branches. So I suggest to deduct TDS u/s 194J. Coz u can't defend urself in the matter of non deduction of TDS. Coz in practicle life branches & HO is a single body.

TANK JIGNESH SANJAYBHAI

TANK JIGNESH SANJAYBHAI (Querist)
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14 April 2014 Okey sir thank you for your valuable advise.

Sandeep Dharar

Sandeep Dharar (Expert)
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14 April 2014 K ur welcome dear frnd.............

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