Wrong pan - tds claim

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Shruti Mishra (Querist)
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20 February 2012 hello.

my client ABC (NEW), a registered firm, while generating sales invoices have wrongly quoted the PAN of their old firm ABC (OLD) which is also registered but inoperative. No business has taken place in ABC (OLD) since the start. there is no Bank a/c held by the old firm.

because of which ABC (new) is not getting the TDS Credit of the same. and No Income tax return is filed for ABC (OLD). The deductors of TDS are not co-operating in getting the PAN corrected in their TDS returns

How do we fix this ? TDS Claim in question involves a huge sum.

can we write a written clarification to the IT Dept as both the PAN belongs to the same client, & then also apply for surrender of the OLD FIRM PAN ????

Advice.

Thanks!

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 February 2012 First there is one question in your query. in case both the firm are same. why 2 PAN numbers come in to picture. incase you apply for the A.O. he is raise this issue, unless having valid reason, 2 PAN numbers is wrong under Income tax act.

Presently applying for surrender of PAN not advisable, since the credit is available in the old PAN.

Easy way to convenience the vendors to correct the PAN. because before make tds deduction and return. they need to ensure the PAN & Deductee is correct.

Incase going to Income tax department directly , you ensure the compliance of my first point(2 PANS). then you can approach A.O. for the credit of the same in other PAN of the same company. but decision in A.O`S

Shruti Mishra

Shruti Mishra (Querist)
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20 February 2012 Sir the different pan are for different firms under the same management. Out of which one has since the start been inoperative.

The tds has been deposited for pan of the inoperative firm.

My question is because both the firms belong to the same management, and the wrong pan does not belong to any third party, can we write a clarification to the dept. About the mistake.??

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 February 2012 Even though the firms under same management,
first ITO ask to approach vendor to correct the TDS return.

In case of Vendors not co-operative, then based on that. you can approach A.O. but ensure the following documents

1. TDS certificate form:16A from the vendor for that PAN
2. Agreements with the vendor in new firm & invoices for the same(quoting old PAN)
3. Acknowledged Copy of request letter given to the vendor to correct the PAN in TDS return.
4. Income has been booked under new firm name proof

when this things are there, there may be chance to A.O can give credit

Shruti Mishra

Shruti Mishra (Querist)
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20 February 2012 Thank you.