27Q DEMAND FROM TDSCPC

TDS / TCS 506 views 3 replies

Sapan

Article

44 Points Posted on 26 August 2021

Hi All,
We have got Demand from TDSCPC for 27Q for PANERROR which raised to short deduction also.

In Justification Report it seems that TDS is deducted @ 10.4 % instead of 10% as per DTAA. So 0.4% diff is due to cess? Does Cess applicable? (Payment done to Foreign Entity is of 6.7L)

Even if we pay short deduction than what to write in place of PANNOTAVBL in 27Q when we revise 27Q ? as foreign entity has Tax Identification No. & that we have already mentioned filing regular statement in 27Q.

Please help. Thanks in Advance

Replies (3)

JGM

Knowledge Sharer

443 Points Posted on 01 September 2021

From you query, I understand that the demand is to the tune of 0.4% and not on 10%. Thus, the demand has not arisen on account of PANERROR but on account of not considering education cess. In this regard, it is not clear whether the tax is deducted as per the Income-tax Act or DTAA? if the 10% is applied on account of Income-tax Act then the levy of education cess is correctly computed. However, if the rate applied is as per DTAA then you may file a rectification application as the DTAA rate need not be increased by education cess while deducting tax

Lila

Job

539 Points Posted on 22 October 2021

What did you select in remarks column in such a case where PAN is not available.

ZAR

Accountant

22 Points Posted on 27 July 2022

Dear Sir,

While filing 27Q TDS Revised Return i mentioned PANNOTAVBL but after validating the Form i am having error that only structurally invalid pan can be corrected and also the same issue i am facing with email id, contact details and address of deductee. So, please guide for above so i can file 27Q return.