TDS [Resolved] | Income Tax #486570

This query is : Resolved

R. Narasimhan (Querist)

18 September 2010 Hi

One of the company has multiple offices and has seperate TAN Number for each office. The company has suppliers rendering services to each office seperately. Each office of the company considers the supplier differently and deduct TDS on Invoices accordingly. As a result, if the supplier renders service for four offices for Rs.15K each none of the offices deduct TDS as it is not crossed single invoice limit of Rs.20K and does not consider the cumulative total amount. Is it acceptable practice as per the Income Tax Act Provisions relating Tax Deduction at Source? Kindly Advice.

Praveen Sharma

Praveen Sharma (Expert)

18 September 2010 The TDS section applies on the company as a whole irrespective of multiple branches.

You hav to deduct TDS on these bills 7 keep a track on these kind of invoices by regular month processing.

Regards
P

Message likes : 1 times

CMA Chandan Singh

CMA Chandan Singh (Expert)

18 September 2010 As per your question you have Seprate TAN number for each office, but PAN is only one for all the offices, when you will submit the IT Return you will show all the vendor at one place, then it will create problem in future and not acceptable practice as per IT Act.

Wait for other reply.

Message likes : 1 times

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

22 September 2010 Having different TAN for each branch no problem, but expenses booking each places aggregate exceeds the thereshold limit, TDS need to deduct for that party

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