Tds on payment made by association (flat owner

TDS / TCS 1625 views 3 replies

Viral

18 Points Posted on 09 August 2011

Hi,

I want to know that if any association (Flat owner's association) is paying money for security services or house keeping services than is TDS applicable on it ?a nd if yes than how much percentage need to deduct?

Association has just got registered. They don't have any PAN number.

Association is paying Rs. 24000 each per month.

Replies (3)

Mihir

Wealth Manager

5293 Points Posted on 09 August 2011

TDS will apply u/s 194C

If the security service is an individual deduct 1% or if its a company deduct 2%. Check if the bill of this security service includes service tax.

Why no PAN number? In order to deduct TDS the association will have to get a TAN number from tin-nsdl.com

Viral

18 Points Posted on 10 August 2011

Originally posted by : Mihir

TDS will apply u/s 194C

If the security service is an individual deduct 1% or if its a company deduct 2%. Check if the bill of this security service includes service tax.

Why no PAN number? In order to deduct TDS the association will have to get a TAN number from tin-nsdl.com

Hi, association has been registered in the month of June 11 only and they have no idea how to apply for PAN forcassociation. Which documents needs to provide for PAN application. further they have not deducted 2% TDS, is is possible that they deduct it from coming payment of vendor and submit after pan no. received? only 2% is applicable or other deduction is there?

Mihir

Wealth Manager

5293 Points Posted on 10 August 2011

Apply for PAN in 49A form. I think there must be some bye-laws or deed of the association, which needs to be submitted. Then go to the website tin-nsdl and apply for online registration of TAN. Even if you deduct TDS, you will have to deposit the same in the bank, and you cannot do so without TAN.