sankalp (Tax Consultant ( Income Service Sale Tax )) (107 Points)
10 May 2011
1) Our contractor have pan no on individual name but he has produce bill for payment X Enterprises (proprietor firm ) tell me can we diduct 1% TDS OR 2 % ? ( He has cross threshold limit )
2) who we define firm and company , individua for deducting payment ? ( in the case of proprietor ship )
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 10 May 2011
proprietorship firm is assessed under the individual pan card
TDS to be deducted @ 1%
Sandeep Keswani
(Tax Consultant)
(1064 Points)
Replied 10 May 2011
If the bill raised by the contractor is of a Partnership Firm, then TDS will be applicable @ 2%. The contractor has to submit the PAN of the firm and not his individual PAN. In any case, TDS should be made @ 2% only since the bill is in the firm's name.
Try to obtain PAN of the firm......in case if he does not submit PAN, then tax shall be deducted at higher rate of 20%
Ashish Bhatt
( B.COm C.A FINAL (New))
(493 Points)
Replied 10 May 2011
Tds on contractor ( sec 194 c) @ 1% in case of individual...
| Originally posted by : Ashish Bhatt | ||
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Tds on contractor ( sec 194 c) @ 1% in case of individual... |
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Agree with Ashish
Sandeep Keswani
(Tax Consultant)
(1064 Points)
Replied 11 May 2011
Oopsss !! I correct myself. I read PARTNERSHIP firm instead of Proprietorship firm and replied accordingly. Nevertheless my reply was not incorrect. In case of Partnership Firm, TDS @ 2% while for Proprietorship concern (i.e. individual / HUF) TDS @ 1%.
Inconvenience is regretted.
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 11 May 2011
Tax has to be deducted @ 1% as the payee is Individual. Even if the bill is in the name of proprietorship firm, the payee shall be categorised as Individual only.
CAclubindia
