Our company is dealing in more than 1000 parties (Kachcha Arhtiyas) and we are deducting 10% TDS on thier Commission (Dhami). So there is full possibility that few of our PANs are going to be wrong unintentially. We received notice from Income Tax to deposit Rs.1.50 lac becuase of wrong PAN or No PAN our TDS liability was to be at higher rate i.e 20%. My question is.... should we only revise our TDS return or we also have to deposit the tax as per notice? If we deposit tax that will be our loss becasue we cannot deduct any amount from parties as their accounts have been settled but the parties will claim double TDS benifit. Suggest please...
24 November 2011
If PAN number is not available than 20% is must otherwise you have to pay from your pocket. Now the notice was received so revision I think not possible and if possible than transfer all amount not having PAN to other section in chalan and revised the Return, one issue can come that deductee cannot claim refund, only on their own fault you are not responsible or if Possible ask them for PAN and Revised.
29 November 2011
one solution is that you revise the return and send the acknowledgment to assessing officer and request him to not charge an penalt and interest by reply to his letter by registered post.
CAclubindia
