Tds on hiring of car to municipalty---on hire charges

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 November 2014 My client Town Municipal Council has taken a Lndica car on hire basis on mothly rent of Rs.25000/-from the proprieor of car Sri Shankar.I A.wef 01.04.2013.Proprietor has not furnshed the PAN Card /not hold the PAN Card till April 2014.But the TDS deducted amount has been remitted to Central Govt.in the name of Girish who is brother (of Shankar Proprietor of Car ) & Contractor taken Contract works at Municipalty hold PAN Card.What are consequences upon the Shankar, and how much TDS should have been deducted by the Municipality.What penality has to be borne by the Municipality for Wrong Deductions and Remittances made in other names. .
From April 2013 on wards my client has paid hire charges of Rs.24750/-(Rs.25000--250/-TDS) & deducting TDS@1% every month till March 2014.

Ganeshbabu K

Ganeshbabu K (Expert)
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23 November 2014 As u not provided the PAN they may deduct tds and remitted in ur brother name
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if u not provided any PAN they can deduct @20%
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and deduct of 1% TDS is okay
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and you brother needs to show it as his income in his return (which is not actually)
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If payment also made in ur brother name it is okay
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other wise it is illegal payment and not correct as per general rules

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