TDS applicability

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S Sivasalapathy (Querist)
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12 May 2010 In my clint office,expenses paid which is attracting TDS, only crossed the therehold limit is combination of all the branchs. But in single branch which is not crossed the therehold limit. Should he deduct TDS from theirs party?

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CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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12 May 2010 TDS will be deducted. Becasue PAN is for the Company , which is for all your branch.
If the same party is billed to different branch, then we have to check consolidated billing to all branch by that client to such comapny.
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Shyam Lal Naik

Shyam Lal Naik (Expert)
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12 May 2010 In the case of branches of a bank, for the purpose of TDS on interest, the interest of a indivisual branch is considered and not the consolidated amount for all the branches. However, in these cases, each branch do have separate TAN.

In case the deductor opts for obtaining separate TAN for branches, there is no need to incorporate the payment/credit made to each deductee from all branches/offices.

The point is, whether the situation will be different, if the deductor have a centralised system of payement of TDS?

In my view, the alternatives are merely procedural in nature. The law can not be interpreted differently for alternative procedure.

In my view, no necessity to consolidate. In case of big coglomerate, having decenrralised accounting, consolidation may not be practical.

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CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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12 May 2010 Practically, Small company having turnover of 100 cr., having 2 or 3 branch within NCR, company are followinag centralised system.

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