no PAN & liability of tds on contract

Dear Ankit,

AS per new rules If any deductee doesnlt provides his PAN then TDS has to be deducted @ 20%..

U don't have to deposit from ur own pocket, just make the payment after deducting TDS @ 20% if he doesnot provides his PAN

TDS should be deducted on any payments made to contractor. If he does not have PAN then also we have to deduct it.

If we are depositing out of our pocket, den we can not claim that "tax potion "as expenses of our business.

Yes, Amit is right.

Dear Amir 20% is from 1.4.2010

if pan is not quoted then tds is to be deducted at higher percentage.. there is no need to deposit tax out of own pocket as it is to be deducted from amount paid.