TDS @ 20%

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This query is : Resolved

Deepak D (Querist)

29 June 2011 If PAN is not furnished to the deductor tax has to be deducted at 20%.

Should the PAN be furnished in all the invoices or should the PAN be intimated to the deductor once?

Pls advice.

Thanks

CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)

29 June 2011 Although it is not mandatory to mention PAN in all invoices, it is a better option compared to intimating PAN to every new deductee.

Deepak D

Deepak D (Querist)

29 June 2011 But

18[Requirement to furnish Permanent Account Number.
206AA. (1) Notwithstanding anything contained in any other provisions of this Act, any person entitled to receive any sum or income or amount, on which tax is deductible under Chapter XVIIB (hereafter referred to as deductee) shall furnish his Permanent Account Number to the person responsible for deducting such tax (hereafter referred to as deductor), failing which tax shall be deducted at the higher of the following rates, namely:—
(i) at the rate specified in the relevant provision of this Act; or
(ii) at the rate or rates in force; or
(iii) at the rate of twenty per cent.
(2) No declaration under sub-section (1) or sub-section (1A) or sub-section (1C) of section 197A shall be valid unless the person furnishes his Permanent Account Number in such declaration.
(3) In case any declaration becomes invalid under sub-section (2), the deductor shall deduct the tax at source in accordance with the provisions of sub-section (1).
(4) No certificate under section 197 shall be granted unless the application made under that section contains the Permanent Account Number of the applicant.
(5) The deductee shall furnish his Permanent Account Number to the deductor and both shall indicate the same in all the correspondence, bills, vouchers and other documents which are sent to each other.
(6) Where the Permanent Account Number provided to the deductor is invalid or does not belong to the deductee, it shall be deemed that the deductee has not furnished his Permanent Account Number to the deductor and the provisions of sub-section (1) shall apply accordingly.]

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