TDS Query

Dear Friends,

Hi everybody

I need a clarification on the following matter

Facts of the case:-

1. Mr. Ajay is a proprietor of two business entities for the F.Y. 2008-09. He commenced business in the F.Y. 2002-03 in the name of M/s. A & Co., which is subject to tax audit u/s 44AB since inception.  He commenced one more business in the name of M/s. Ajay & co., in the F.Y. 2007-08 whose turnover exceeded Rs.40L for the F.Y. 2007-08, so TDS provision become applicable for all the payments to be made in the F.Y. 2008-09. 

Query

1.Whether TAN is issued by the department on the name of business entity or on the name of the proprietor in the case of individual. 

2.Whether Mr. Ajay has to apply for a new TAN Number on behalf of M/s. Ajay & Co or the TAN number issued by the department on behalf of M/s. A & Co it self is sufficient for submitting TDS.

3. Whether TDS has to be deducted on payments to be made by M/s. Ajay & Co to M/s. A & Co coming under the provision of section 194C.

Thanks

Regards

Dinesh N

 

Replies (1)

1. TAN is issued in the name of proprietor

2. Single TAN should be used (same concept as using a single PAN)

3. I am not sure but i dont think payments whithin firms having same proprietors are allowed as expenses- as such they should not attract any TDS- Moreover you cannot deduct your own TDS

 

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