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: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: VAT RATES :: empanelment :: form 3cd :: ACCOUNTING STANDARDS :: cpt :: due date for vat payment :: ACCOUNTING STANDARD :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: articles on VAT and GST in India :: TDS
 
 
General »
 Shah gets notices over civic tax dues
 Tax revenue down in first six months after prohibition
 Post demonetisation, Income Tax department sends 30 cases of irregularities to Enforcement Directorate, CBI
 Don’t rush into a new tax without being prepared
 Can’t tax income from palace rent: Supreme Court
  Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on November 30, 2016)
 Cases for tax scrutiny will be selected by machines
 Time to revisit 1997 direct tax rates, says P Chidambaram
 Lok Sabha passes Bill to tax black money deposits post demonetisation
 Last day to pay property tax with old notes
 Income tax department asks IDS declarants to pay tax by 30 November

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