TDS ON CONTRACTOR

This query is : Resolved

ca mithlesh sinha (Querist)
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21 July 2010 IF A TRANSPORTER FURNISHES HIS PAN THEN THERE IS NO LIABILITY TO DEDUCT TAX. BUT IF NO PAN IS FURNISHED BY TRANSPORTER TDS RATE WILL BE 20%. IN CASE OF OTHER SECTION TOO IF PAN IS NOT FURNISHED TDS RATE WILL BE 20% (THE MAX RATE).

BUT HOW CAN I FILE TDS RETUEN FOR THE PERSON BECAUSE EVEN IF ONE PAN IS MISSING IN RETURN THE RETURN WILL NOT BE VALIDATED.

SO WHETHER NILL RETURN WILL BE FILED FOR THE SAME.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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21 July 2010 Ideal thing :

You include all challans in your return.

But in cases of deductees, fill the details of only those whose PAN no is available with you OR

At max, you can also include deductees in your return to the extent it does not violates your ceiling of 85 % mandatory requirement.

You must also intimate the same to your deductee about their exclusion from your return, so that for getting the IT benefit, they may opt to apply / furnish their PAN to you.

Subsequently, you can file the etds correction statement for those deductees.

ca mithlesh sinha

ca mithlesh sinha (Querist)
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26 July 2010 THANKS
BUT PLZ REFER TDS RETURN FOR IST QTR FOR F Y 2010-11. EVEN SINGLE PAN IS MISSING U CAN'T FILE UR RETURN. THE LIMIT OF 85% WAS TILL F Y 09-10.

ANOTHER PROBLEM IS AT WHAT TIMES CAN WE REVISE OUR RETURN. IF OUT OF 10 PERSON WHO HAS NOT PROVIDED HIS PAN , NOW 2 PROVIDES US HIS PAN AND WE REVISED THE RETURN. AFTER SOME TIME SOME LIKE 5 MORE PERSONS PROVIDES US HIS PAN. SO IT MEANS IT IS EVERENDING STORY AS IN TDS THERE NO TIME LIMIT TO REVISE RETURN.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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26 July 2010 Dear Mr. Sinha,

As of now the TDS requirement for ETDS returns stands at 85 % for 26Q & 95 % for 24 Q.

Rules have only been amended w.r.t TDS @ 20 % , where no PAN is available. No change has been done in etds return requirements.

I know, its actually an anomaly of this amendment that even after deducting TDS at higher rate, you need to know the PAN for achieving 85 % PAN target for TDS returns.

But, till this anomaly is removed, nothing much can be done about this.

At max, we can postpone the process of revising the tds returns to the end of the financial year.

In anyway, by deducting TDS at higher rate, you fulfilled your duty. Its only the deductee, who are going to get in trouble by not getting credit for TDS deducted. The reason... their fault : non-submission of PAN.

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