CA DEVIKA BANSAL (Assistant Manager-Finance) (37 Points)
08 July 2016If the service provider has rendered services below threshhold limit and the Service receiver doesnt have the PAN No.Do the SP required to deduct TDS @ 20% knowingly that the value of service is below threshhold limit
Soumyajit Maity
(Consultant at Big 5 CA Firm)
(35 Points)
Replied 08 July 2016
Irrespective of the fact that the receipiant of services do not have PAN, TDS will be deductable if it is exceeding the the maximum limit for non deduction.
Dinesh Mertiya
(PROFESSIONAL)
(761 Points)
Replied 08 July 2016
If TDS provision is applicable on Service Provider then
deduction of tax is required at the prescribed rate if the deductee is having PAN No. and deduction is made @ 20% if the deductee is not having PAN No.
CA Karan Sathe
(CA )
(564 Points)
Replied 08 July 2016
since payment to assessee is below threshold limit, TDS provision is not applicable to him. Hence, no TDS even if service received does not have PAN. only when payment exceed the threshold limit and assessee does not have pan then deduct @ 20%
CA ASHOK DAHIYA
(CA)
(124 Points)
Replied 08 July 2016
Ambigous question !!! Why SP would deduct tds. since SP would receive payment from SR. So liability to deduct tds is of SR. So if payment is under threshold limit, no need to deduct tds by SR, no matter if SP doesn't hv PAN.
IF payment exceeds threshold limit, and SP doesn't have PAN, then SR shall be liable to deduct tds at heigher rate .i.e. 20%
AJAY KUMAR JAIN
(SERVICE)
(101 Points)
Replied 08 July 2016
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