What to reply on tds query not required to pay.

TDS 887 views 5 replies

Sir!

I HAVE GO THE FOLLOWING COMMUNICATION FROM TDS DEPARTMENT AS "

Dear Taxpayer,
 
It has been gathered that you have filed Income Tax return for Financial Year 2011-12 . However, as per our information, you have not been allotted with any  TAN (Tax deduction and collection Account Number) for the relevant PAN (Permanent Account Number).

You may be covered under one of the following conditions. Please confirm the same through return mail by 27th November,2013 specifying that:

a) You are not liable to deduct and collect tax as per the provisions of Chapter XVII B & BB of Income Tax Act, 1961  or

b) You have not applied for TAN, whereas you are liable to deduct tax or,

ETC, ETC..."

I am runnig a pvt ltd company and never requires to cut DTS at all. Now based on the above query what should I reply to the authority!

Requested to reply on my query before 27th Nov 2013.

Regards.

Replies (5)

You are required to obtain TAN.

Yours is a pvt ltd co. You are liable to deduct TDS on payment made to directors, auditors, employees, contractors, lawyers, other sub-contractors and professionals. 

If you runs a pvt. Ltd. Then you must have a tan no. If you made payments to any contractor, any professional such as advocates, ca etc. Or any payment made regarding advertisement etc. You haveto deduct the tds as per various sections.
IF U R NOT REQUIRED TO DEDUCT TDS IN ANY PAYMENTS OR NOT LIABLE TO DEDUCT TDS ON ANY PAYMENTS THAN NOT REQUIRED TO APPLY FOR TAN NO SO REPLY ACCORDINGGLY

Yours is a Pvt.Ltd. Company. In any event it should be audited and finalised for Income Tax and Company Law purposes.  There should definitely be an AUDITOR (Chartereted Accountant  in practice) who has to audit and finalise your company accounts both for I.Tax and Company Law puposes. Depending on the nature of business and total turnover even Service Tax may be  attracted. There is efiling of I.Tax Returns and Annual e-filing to comply with the Companies Act and also e-filing of Service Tax returns.  Consult your statutory auditor who will advice you properly.  It is not possible to say wether you require TAN or not without having a look at your accounts. So do consult the Auditor and take proper and guided advice.  

if you r pvt ltd company than you need to compulsory deduct tds


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