Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: due date for vat payment :: cpt :: VAT Audit :: form 3cd :: Central Excise rule to resale the machines to a new company :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: list of goods taxed at 4% :: articles on VAT and GST in India
General »
 Banks warn share tax hike threatens Paris' post-Brexit appeal
 PMC may decide on property tax rebate for IT firms this week
 I-T Dept is giving out certificates of appreciation. Have you received yours?
 Government works on ironing out benefits refund mechanism for exportersa
  Tax officials are using an IDS provision to question transactions beyond six-year-limit
 Tax-free bonds rally like midcap funds
 Senior citizens do not have to pay advance tax on salary and interest income
 GST: Audit commissioners to get adjudication powers
 Interest on NRE rupee account can be exempt from tax under FEMA
 Impact of GST on Real Estate Sector
 GST regime: Tax payers allowed to take option of third-party interfaces

Higher tax for missing
January, 21st 2010

PAN must be quoted in all transactions between two entities that involve a tax deduction at source, failing which the tax deducting entity will impose a 20 per cent levy.

The new rule will take effect from the next fiscal, the Central Board of Direct Taxes said in a notification.

PAN (permanent account number) is an identification number issued to all entities with taxable income.

Transaction is a legal document between two parties such as a rent deed or a gift deed; transaction is not salary. Tax consultants said in most cases the 20 per cent levy was higher than the existing TDS (tax deducted at source) rate. Entities are individuals as well as firms.

The deductee (person from whom income tax is deducted) shall mandatorily furnish his PAN to the deductor, failing which the deductor shall deduct tax at source at higher rates, said the Finance Bill for 2009-10.

The new rule applies to non-residents as well in respect of payments and remittances that are liable to TDS.

Besides, there were no grounds of dispute between entities vis--vis quoting and non-quoting of PAN or its accuracy. The law requires all deductees and deductors to quote PAN in all correspondences, bills, vouchers and other documents sent to each other, the CBDT said in a statement.

According to the new provisions, a certificate for deduction at a lower rate or no deduction shall not be given by the assessing officer, if there is no PAN. Besides, declaration by deductee for non-deduction of TDS on payments shall not be valid.

All deductors are advised to intimate their deductees to obtain and furnish their PAN to avoid TDS at a higher rate, the statement said.

The CBDT has advised entities as well as non-residents engaging in taxable transactions to get PAN by March 31 and communicate the information to the deductors.

TDS rates vary depending on the transactions but are lower than 20 per cent. The latest notification is aimed at encouraging better compliance with TDS norms.

Faced with a huge budget deficit, the government is pulling out all the stops to increase revenue collections.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions