Tds multiple branch

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This query is : Resolved

Aman Agarwal (Querist)

19 April 2014 I am working in a Listed Company. The Company has 5 factories in the same state. Each factory has 4 Divisions. Each Division has a different TAN number.

Now, considering any one factory(F1). Suppose it has 2 Divisions (D1) and (D2).

D1 is taking professional services and needs to deduct TDS on the same. However, payment to the service provider is made by D2 after deducting TDS(for the first 6 months).

So, is it wrong from compliance point of view, that TDS is not deducted by D1 but by D2 for 6 months since services is received by D1?

What is a centralized TDS scheme in this regards?

Please provide links to laws/act/rules for references.

Rupesh Jain

Rupesh Jain (Expert)

19 April 2014 r/sir

your PAN is one due to you divide the company work in diff-2 division/deptt. for controlling work.

then you do required the deduct the tds due to owner ship in single.

Aman Agarwal

Aman Agarwal (Querist)

19 April 2014 Dear Sir,

My question is if there has been any mistake since TDS has been deducted and paid by a different unit and not by the unit which has incurred the expenditure.

Rupesh Jain

Rupesh Jain (Expert)

19 April 2014 sir
if on deptt make TDS deduction and II make payment
then you can tfr the entry of tds or entry on payment from one to another deptt.
if on deptt make TDS deduction and deposit by the same/ another deptt.
income tax deptt have no problem from that
if you timely make payment of taxes.

Aman Agarwal

Aman Agarwal (Querist)

19 April 2014 I do not have to apply for centralized TDS scheme?

Rupesh Jain

Rupesh Jain (Expert)

19 April 2014 I AM ASKING FOR YOU ACCOUNTING VIEW NOT THE CENTERLIZED TDS SCHEME.

ITS MEANS IF YOU HAVE 5 DEPTT
ONE PERSON MR A IS PROFESSIONAL WE PROVIDE SERVICE TO ALL YOUR DEPTT.

BUT HIS BILL IS
1 TO 20000
2 TO 50000
3 TO 15000
4 TO 5000
5 TO 30000

IF YOUR VIEW YOU ARE DEDUCTING TDS IN 2 DEPTT ONLY .

BUT AS PER LAW YOUR ALL DEPTT WILL LAIBILE TO DEDUCT TDS DUT TO BILL OF ONE PERSON TO YOUR COMPANY IS RS. 120000/-

Nikhil Kaushik

Nikhil Kaushik (Expert)

19 April 2014 there is nothing called centralized TDS scheme. The head office should ensure TDS compliance on an overall basis by each department irrespective how many TAN you have.

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