Tds on payment to contractor

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parwani (Querist)

21 April 2013 CONTRACTOR HAS ISSUED A BILL FOR WORK,
BILL IS PROPRIETORSHIP FIRM. PAN NO GIVEN.
2% TDS DEDUCTED.

WHILE FILLING TDS RETURN FOR FORM 16A CONCERN WHICH NAME FEEDED NAME OF FIRM OR INDIUAL PROPRIETOR NAME.

AS FORM 16 TDS CERTIFICATE IS TO BE ISSUED.

PLZ CLEAR MY DOUBTS.

THANKS IN ADVANCE

A.Senthil Subramanian

A.Senthil Subramanian (Expert)

21 April 2013 Parwani, your question is not in clear about the Bill. But as per Incometax provisions, If PAN not given in ETDS return TDS should be deducted at 20%.Further, Form16A will not be serviced by TRACES for that party being Non-availability of PAN then there is no PAN ledger creation. So it is better to obtain PAN for that party either Individual or Firm, and file ETDS return. If individual PAN 1%TDS and Other than Individual PAN 2% TDS. Please know onething. Quoting of NAME in ETDS return is not necessary. But Quoting of Correct PAN is mandatory.

Harsha.H

Harsha.H (Expert)

22 April 2013 Get the PAN no. Zerox copy from that contractor. Then put the Name mentioned in that PAN no. only..

Means,on whose name PAN is alloted, that name should be used while filing Returns.
If the contractor has given his personal PAN, his name should be used.
If the contractor has separate PAN no. for his firm, then FIRM name should be used.

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