Tds for no pan assessees

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Sir,

What are the implications as per Act if TDS for a Non PAN Assessee is deducted @ 1% for advertisement?,The return has already been submitted.Also, the party has now taken PAN number.Thank u all for ur concern.....

Replies (7)

dear mohammed,

where PAN of deductee is not available,TDS is to be ded at a higher rate.

In your case, you should have ded at 20%.

Now you can file a correction statement...

Thank u for your reply.

But the assessee is now having PAN.So Do I ned to pay the short amount or just revuse the return?

If you receive a notice in this regard you need to pay the short deduction...

Actually I am at the clients office for auditing.So should I report or can I ask them to rectify?

it depends on the day you had deducted TDS dear.... So as per rules u must b liable to deduct TDS @ 20 @ on that day....

Though the pan no is now avaiable with the client but i wil suggest that its better if the shortfall is now paid..........

Dear sir

Whether the demand from TRACES is  received or not, get the consolidated file from TRACES and update the Pan in the deductee details (carfully follow the rules of modification in case of NOPAN) and file the correction statement.

 

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