TDS

This query is : Resolved

CA. Mala Rohara (Querist)
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22 September 2009 TDS on Transporter Contractor is NIL, in case of having PAN w.e.f. 01/10/2009. Then What about the contractor having PAN but furnish a certificate of lower rate U/s 197. In this case whether TDS should be done on basis of lower rate certificate or no TDS should be deducted?

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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22 September 2009 TDS is a duty on the persons making payments and they are relived from this duty w.e.f 01.10.2009 for payment to transport operators subject to production of PAN.

So we need not to deduct tax even if a person is having a back dated certificate for lower rate of TDS.

However in case a person is having such certificate and not showing his PAN then we must continue with TDS at such lower rate.

Cheers

Sanjay

Shyam Lal Naik

Shyam Lal Naik (Expert)
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22 September 2009 The furnishing of a Certificate for deduction of tax at lower rate can be construed as furnishing of PAN by the transporter.

In such an eventuality, in my opinion, tds need not be deducted.

Separate return for such non deduction has to be filed. This will be an additional compliance burden.

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