Higher rate of TDS (20%) on non furnish of PAN

If any person is not furnishing PAN then deductor suppose to deduct TDS @ 20% from April,10 onwards, correct...

here my query is even employees are also covered in the above def. of person or only vendors ?

Replies (6)

Employees do not fall under this category.

Employees tax is to be deducted as per the Tax slabs applicable to relavent assessment year.

Higher rate is applicable to the parties who are raising bill to you and do not quote their PAN on their bill. It is applicable from 1st April, 2010.

This provision will apply other than TDS under "section 192"

No, applicable only for other than TDS from Salary.

 

         Hi,

There is a New Section 206AA proposes furnishing of PAN by the deductee to the deductor and the same shall be indicated by both deductor and deductee in all correspondence, bills, vouchers and other documents which are exchanged between them. If the PAN is not furnished by the deductee, then TDS has to be made at the applicable rate under the respective section or @ 20% whichever is higher. Also, if the PAN furnished is invalid, then the same will be treated as not ever furnished and the TDS to be made at applicable rate or @ 20% whichever is higher.

There is nowhere written that the same will be not applicable for TDS u/s 192, if any body has that view kindly share the same with a legal back up.

Thanks

        Furnishing PAN by the deductee to the deductor and the same shall be indicated by both deductor and deductee in all bills which are exchanged between them. If the PAN is not furnished by the deductee, then TDS has to be made at the applicable rate under the respective section or @ 20% whichever is higher. Also, if the PAN furnished is invalid, then the same will be treated as not ever furnished and the TDS to be made at applicable rate or @ 20% whichever is higher. There is nowhere written that the same will be not applicable for TDS u/s 192.  

 

I agree with Mr.Ramana M V and Mr.Nithesh Jain.

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