TDS
This query is : Resolved
Ankita Jain
(Querist)
23 June 2011
there is a branch nd a head ofc...the transaction of d CHA is within d limits of TDS with d headofc, i.e if considered only with reference to headofc d TDS should nt b deducted.....bt d transaction of d same CHA with d branch attract TDS....
so i wanted to know dat should d headofc also deduct TDS....as consolidated balance sheet is prepared.....
so i wanted to know dat should d headofc also deduct TDS....as consolidated balance sheet is prepared.....
24 June 2011
Yes TDS threshold will be considered after taking into both branch and head office accounts. So in your case TDS must be deducted.
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CA Chandresh Agrawal
(Expert)
24 June 2011
The logic behind such is that I tax provision make a person liable to deduct tds and branch office and head office are same person so payment made by both of them should be combined to attract tds liability
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24 June 2011
Kindly collect the PAN number of the service render at Branch as well at H.O. If the PAN is same the limit as fixed by the Act is applicable to that person whether he is doing business with your branch or your head office. If at Branch TDS is attracted then automatically at H.O it is also attracted as total turnover during the year is to be taken and accordingly the TDS has to be deducted. For the purpose of Income Tax Act there is no concept of Branch and Head Office. One Company, One TAN, One PAN and all acts, rules applicable on company and the persons dealing with it in the entire country.
Therefore, let the Branch deduct the TDS, let it be paid by H.O. but one thing must be noted that the H.O. should file the Return of TDS in time otherwise the tax deducted and paid shall not appear online for verification.
It is for your kind information that now a days every tax payer can see his tax credit online and if the company has not paid the tax the tax credit will not appear in the account of the deductee and accordingly he can direct the company to pay the TDS.
Therefore, let the Branch deduct the TDS, let it be paid by H.O. but one thing must be noted that the H.O. should file the Return of TDS in time otherwise the tax deducted and paid shall not appear online for verification.
It is for your kind information that now a days every tax payer can see his tax credit online and if the company has not paid the tax the tax credit will not appear in the account of the deductee and accordingly he can direct the company to pay the TDS.
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24 June 2011
I agree that one PAN is for one company but one company can have many TAN nos. In case of TAN TAN nos can be taken on branch basis. But the as regards threshold limit for TDS it is applicable to the assessee as a whole whether it is head office or branch office.
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24 June 2011
Yes I agree with you
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