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TCS rate if pan is not available

Umesh (1) (174 Points)

24 October 2011  

Dear All

What will be TCS Rate if PAN is not available. is it 2% (double as normal TCS rate) or 20%.


Which is correct?

is there any notifacation in this matter


Please help me out

 5 Replies

Sumit Grover (Chartered Accountant ) (3647 Points)
Replied 24 October 2011

section 206AA(i.e. HIgher rate in case on non - availablity of PAN) is not applicable in case of TCS . This section covers only the payments under Chapter 17B of Income Tax Act. TCS falls under Chapter 17BB. So any Tax collected through TCS provision, does not makes sense of higher rate determination for PAN deficiency.

1 Like

Rahul Gupta (Chartered Accountant) (644 Points)
Replied 24 October 2011


Ankur (Professional) (95 Points)
Replied 07 January 2014

but i received notice for tcs @ 20% for pan not available

sarath (CA) (82 Points)
Replied 07 January 2014

Section 206AA  'Uses the Term Notwithstanding Anything Contained in "Chapter XVIIB)",, The recovery be at 20% if PAN is not available.

The point here is TDS Provisions are in Chapter XVIIB and TCS Provisions are in Chapter XVIIBB.

Typing this is Only Chapter like this, in Income tax Act.

Other Chapters of the act are Distinctive say XIX has sub chapter but all distinctive Like XIX-A ,, XIX-B

But in TCS Case "had if" the TCS chapter is a distinctive chapter then it serial should ideally be XVIIC , which should have the serial number after XVIIB,, Then TCS would have been a seperate chapter,, But in Income Tax Act,1961-"No New Chapter" number is allotted to TCS but just an extension after TDS. That is the reason ,the assessing office applied the provisions of Section 206AA even to TCS also.

Refer section 206AA on the link: https://www.exploreincometax.com/Indian-Income-tax-Act-1961/Section-206AA

CA Manish Sukhani (CA, CS, B.com) (267 Points)
Replied 02 June 2016

So, If Client does not have PAN no. than what rate of TCS shall be if he is Indian resident  or NRI ?

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