TDS on payment to contractor
This query is : Resolved
03 May 2010
Dear Professionals
Pls help in solving the foloowing query:
According to amendment made by CBDT to the provisions related to deduction of tax at source (TDS), TDS @ 20% shall be deducted by the deductor if PAN is not provided by the deductee to the deductor.
However, according to section 194C i.e. deduction of TDS on paymnet made to contractor, if amount does not exceed Rs. 20,000 then Tax is not required to be deducted at source.
Query: Pls clarify, if payment to a contractor is less than 20000 & PAN is not provided to the deductor then is deductor required to deduct tax at source @ 20%?
pls guide with case laws on the matter.
thanks & regards
CS. Deepika Bhardwaj
Pls help in solving the foloowing query:
According to amendment made by CBDT to the provisions related to deduction of tax at source (TDS), TDS @ 20% shall be deducted by the deductor if PAN is not provided by the deductee to the deductor.
However, according to section 194C i.e. deduction of TDS on paymnet made to contractor, if amount does not exceed Rs. 20,000 then Tax is not required to be deducted at source.
Query: Pls clarify, if payment to a contractor is less than 20000 & PAN is not provided to the deductor then is deductor required to deduct tax at source @ 20%?
pls guide with case laws on the matter.
thanks & regards
CS. Deepika Bhardwaj
03 May 2010
not at all. as the matter is now so there can not be any case law which has been decided.
Message likes :
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03 May 2010
thanks, is there any clarification issued by authority on the matter. Otherwise hw can we prove our stand of not deducting TDS.
thanks & regards
CS. Deepika Bhardwaj
thanks & regards
CS. Deepika Bhardwaj
03 May 2010
Payment to contractor's (for tax deduction) is covered under section 194C. But sub-section (5) says no deduction shall be made ...... if such sum does not exceed Rs. 20,000/- (now proposed to increase in the Finance Bill,2010 to Rs.35,000/-). So in the query raised, the payment is less than the threshold limit meaning thereby no TDS is required. If there is no tax deduction no need to get PAN of the deductee.
Message likes :
1 times
03 May 2010
thanks, is there any clarification issued by authority on the matter. Otherwise hw can we prove our stand of not deducting TDS.
thanks & regards
CS. Deepika Bhardwaj
thanks & regards
CS. Deepika Bhardwaj
03 May 2010
thanks, is there any clarification issued by authority on the matter. Otherwise hw can we prove our stand of not deducting TDS.
thanks & regards
CS. Deepika Bhardwaj
thanks & regards
CS. Deepika Bhardwaj
03 May 2010
there is no clarification from any authority it is interpretation of sec & rules all together.
Message likes :
1 times
03 May 2010
agree with experts
Message likes :
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