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TDS deduction reg

Balakrishnan Mohan (Consultant) (1 Points)

06 November 2019

i am a propritorix concern
i would like to deduct tds to contractor.
i will ready to pay from 281 but i have pan no only.
please advice me.

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4 Replies

CA ABHAY GUPTA (Practice) (3235 Points)
Replied 06 November 2019

You need to apply for TAN, then pay tax by Form 281 and then you will need to file form 26Q with valid PAN of contractor..

1 Like

Kapadia Pravin (17264 Points)
Replied 07 November 2019

You have a proprietory concern. Are you under tax audit under 44AB ?

If you are not under tax audit in preceeding FY to current FY then no need to deduct TDS.

But if you are under tax audit and single payment to contractor exceeds 30000/- or aggregate payment exceed 1 lakh then TDS deduction is must.

And for that you have to obtain TAN Number first. 281 challan you can't use without TAN Number.

1 Like

sabyasachi mukherjee (27849 Points)
Replied 07 November 2019

@ balakrishnan menon
tax audit and tds are two different things altogether.
Tax Audit is governed by different section.
But it certainly verifies or validates through certain pescribed formats whether tax deducted is deposited to the authorities.
govt. deposition of provident fund is being deposited to the provident fund authorities in due course of time.
pescribed format 3CA or 3 CB

WHETHER THEIR BOOKS OF ACCOUNTS ARE TO BE AUDITED OR NOT DEPENDS ON TURNOVER.SEC 44AB (a)
TDS -TAX DEDUCTED AT SOURCE UNDER SECTION 194. FOR DIFFERENT SERVICES PRIVIDED .
IF YOU HV PAN NO. TAX WILL BE DEDUCTED BY YOU THE TIME OF PAYMENT OR CREDIT OF SUCH AMOUNT IN ANY ACCOUNT AT SUCH PESCRIBED RATES @ 1% IF THE RECIPIENT IS INDIVIDUAL
2% IF THE RECIPIENT IS ANY OTHER PERSON
THRESHOLD LIMIT RS.30000 FOR A SINGLE TRANSACTION.
RS.1 LAC IN A FINANCIAL YEAR.