TDS- PERMANENT ACCOUNT NUMBER

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This query is : Resolved

Jairam (Querist)

13 December 2008 My client makes payments to contractors who do not have a PAN.The contractors are not keen to obtain PAN. In such cases at what rate should TDS be deducted? Im informed that there was a notification demanding deduction of TDS at a higher rate where the contractors do not have PAN.

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)

13 December 2008 There was a news as you pointed out, but it was just a consideration proposal by cbdt. No notification has yet came in this rgard. SO you have to deduct TDS on contractors as per the normal provisions as existing. No change came yet.

Jairam

Jairam (Querist)

14 December 2008 What would be the situation if all my contractors do not have PAN. In such a case how would i go ahead with the uploading with Return.

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)

23 December 2008 Sir, this is your duty to deduct TDS and deposit it. In this situation all you can do is to force your contractors to get PAN, for avoiding any future litigations. In any case, you can not avoid your liability. One thing you must do is that you must not stop deducting TDS and depositing with revenue authorities, so that you can have a safeguard to a greater extent.

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