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This query is : Resolved

Priti (Querist)

01 May 2014 sir,

our co. need to pay brokerage of 8.60lac but the person charging this amount is individual and do not have this business on regular basis. So he is not having TAN no. Now what shall i do?? shall i deduct tds? what about the certificate as there is no TAN?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

01 May 2014 Your company is paying the brokerage so your company will deduct the TDS u/s 194H @10%. Your company needs to have TAN and not the payee. Person receiving this amount needs to have PAN and not TAN. If he does not furnish PAN then your company will have to deduct TDS @20%.

TAN is needed for the deductor not the deductee. Deductee is required to provide PAN.

Rupesh Jain

Rupesh Jain (Expert)

01 May 2014 if your company pay brokerage in a year exceeds Rs. 5000/-
then you have to deduct tds @ 10% on brokerage amount.
for that you want PAN of person of brokerage receiver.
if he have not PAN then you have to deduct TDS @ 20% on all amount.

then you deduct the TDS then you required TAN for filing of TDS return.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

01 May 2014 TAN is required even for deduction of TDS since TDS will be deposited using ITNS 281 quoting TAN of the deductor.

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