TDS U/s 195(6)

Save Share

This query is : Resolved

Mahadeo Gawas (Querist)

01 October 2010 Sir,

I have to make payment to foreign company as professional fees (techinical). Party has not furnished his PAN/He has no PAN. Please let me know whether I have to deduct 20 + 3% TDS or 10 + 3% (Payment is less than 1 crore)

Rahul Sharma

Rahul Sharma (Expert)

01 October 2010 you have to deduct the TDS @20.60% on gross amount and you have also deposit the Service Tax on reverse calculation

Abuzar Azmi

Abuzar Azmi (Expert)

01 October 2010 Offcourse it is 20 + 3 %

Pls do not make mistake otherwise you ave to pay from your own pocket.

CA Mukesh Jain S

CA Mukesh Jain S (Expert)

01 October 2010 I agree with the above people.

You need to deduct @20% + Ecess as per the act

venkatraman shrinivas

venkatraman shrinivas (Expert)

03 October 2010 206AA has been made mandatory. If the payee does not furnish his PAN, as a punitive measure tax has to be deducted at enhanced rate. Pl. therefore, do not hesitate to deduct tax @ 20% plus attendant levies. If not you will have to bear the brunt of not only he tax difference, but also interest under section 201(1A), which can never be waived.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now