TDS

Save Share

This query is : Resolved

ALICE (Querist)

09 March 2010 Can any one tell me the higher rate of TDS, if a lorry contractor (194 C) doesn't have PAN number? And above how much payment the higher rate is applicable?

CA Mohd. Ubaid

CA Mohd. Ubaid (Expert)

09 March 2010 If a transporter does not provide PAN the rate of TDS would be 1% in case of individual/HUF and 2% in case of any other transporter.

Message likes : 1 times

Krishan

Krishan (Expert)

09 March 2010 A new provision relating to tax deduction at source (TDS) under the Income Tax Act
1961 will become applicable with effect from 1st April 2010. Tax at higher of the prescribed
rate or 20% will be deducted on all transactions liable to TDS, where the Permanent Account
Number (PAN) of the deductee is not available. The law will also apply to all non-residents
in respect of payments / remittances liable to TDS. As per the new provisions, certificate for
deduction at lower rate or no deduction shall not be given by the assessing officer under
section 197, or declaration by deductee under section 197A for non-deduction of TDS on
payments shall not be valid, unless the application bears PAN of the applicant / deductee.

2. All deductors are liable to deduct tax at the higher rate in all transactions not having
PAN of the deductees on or after 1st April 2010. In order that there is no dispute regarding
quoting / non-quoting of PAN or accuracy thereof, the law requires all deductees and
dedutors to quote PAN of deductees in all correspondences, bills, vouchers and other
documents sent to each other. All deductors are, therefore, advised to intimate their
deductees to obtain and furnish their PAN so as to avoid TDS at a higher rate. All deductees,
including non-residents having transactions in India liable to TDS, are advised to obtain PAN
by 31st March 2010 and communicate the same to their deductors before tax is actually
deducted on transactions after that date.

Message likes : 1 times