20 Latest Amendments in Tds Compliance of Notices

8/4/2019 20 Latest Amendments in Tds Compliance of Notices

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Latest Amendments in TDS &compliance of notices issued

regarding TDS

CA.MANOJ LAMBA

BCOM ,FCA09355371639


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15th November,2010 ANURAG MANOJ & ASSOCIATESCHARTERED ACCOUNTANTS

LATEST AMENDMENTS Mandatory to quote valid PAN in case TDS is

not at higher rate.

Valid PAN to be quoted for Lower/Nodeduction of TDS.

For TDS/TCS deposited by book entry, 7 digitnumber generated by TIN for accepted Form

24G statement to quoted in BSR code field.This value will be provided by the AccountsOfficer to the deductor.


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Latest Amendments Procedural Amendments

E TDS Filling Amendments


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. Dates for Payment of TDS

Rule 30 - W.E.F 1.04.10 SixthAmendment Rules 2010 dated31.05.10


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What is amendment ? Income Paid/ credited in March on

or before 30thApril

In any other case on or before 7days from the end of the month inwhich the

Deduction is made

Income tax is due u/s 192(1A)


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Relaxation in certain casesAssessing officer with the approval of the

Joint commissioner may permitpayment on a quarterly basis in special

cases.

(Salaries, interest, insurance commission,brokerage & commission).

Due dates would be 7th

July, Oct, Jan and30thApril.


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Certificate of TDSRule 31 - W.E.F 1.04.10 Sixth

Amendment Rules 2010 dated31.05.10


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Forms:

Form 16 deduction/ payment u/s192

Form 16A other provisions


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Certificate to specify:

Valid PAN of deductee

Valid TAN of deductor

Receipt numbers of quarterly returnsfiled by deductor


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Periodicity and time limit:

Form 16 - Annual 31st May offollowing FY

Form 16A Quarterly 15 days fromdue date for furnishing the quarterlyreturns.


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Quarterly statement of

deduction of TDS

Rule 31A - W.E.F 1.04.10 Sixth

Amendment Rules 2010 dated31.05.10


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15th November,2010ANURAG MANOJ & ASSOCIATES

CHARTERED ACCOUNTANTS

Forms:

24Q- sec 192

27Q- other sections deducteesbeing non-residents, resident but notordinarily resident, foreign companies

26Q other deductees

27A Verification statement

Electronic filing 27 EQ TCS (Rule 31AA)


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Mode of filing: electronically to DGIT-Systems/ person

authorized

Companies

Deductors covered by 44AB

Where Deductee records are 20 ormore in any quarter in a statement.

Others paper option is available


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Due dates

15th July

15th Oct

15th

Jan 15th May of the following FY


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Deductor to quote

His PAN and TAN

PAN of all deductees Particulars of tax paid


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Payment to contractors and

subcontractors:a. Distinction between contractor and

subcontractor removed contract to includesubcontract.

b. Concessional rate for advertising contractsremoved.

c. Rates to be based on the payee - @ 1% forIndividual and HUF and 2% for others

d. Exemption limit amounts not exceedingRs. 30000 or Rs. 75000 in the aggregate in ayear (w.e.f. 1.07.10 Finance Act, 2010)


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Work includes Explanation IV(e) manufacturing or

supplying a product according to therequirement or specification of a

customer by using material purchasedfrom such customer but does notinclude manufacturing or supplying aproduct according to the requirement orspecification of a customer by usingmaterial purchased from a person otherthan such customer


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Tax deduction shall be as under:

On invoice value excluding material value if material value is separately stated inthe invoice.

On the whole of the invoice value ifotherwise


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Challenge

For assessees to identify suchcases and ensure the invoices

reflect the value of materials givenby the assessee to the vendor.


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Rent Sec 194I

Rates of tax deduction have been

amended w.e.f. 1.10.09


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New rates 2% - for use of machinery, plant or

equipment

10% - for use of land etc

Limit Rs 180000 pa (W.e.f. 1.07.10)

Land & buildings - Distinction betweenindividuals and others removed


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Payments to Non residentsSec 195a. Furnishing of information u/s 195(6)

Rule 37BB Inserted by Income-tax(Seventh Amendment) Rules, 2009,

we.f. 01.0 7.09


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Payment to non resident (notbeing a company) and a foreign

company

Information shall be furnished inForm 15CA by assessees

Chartered Accountants certificateshall be in Form 15CB 15CA to be electronically filed and

thereafter a signed printout of thesame to be submitted prior to

remitting the payment


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Requirement to furnish

permanent account number

Sec 206 AA

Inserted w.e.f. 1.04.2010.


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Deductee to furnish his PAN to theDeductor (if tax is deductible underChap XVII B) failing which tax shall be

deducted at the higher of the followingrates;

Rate specified in the relevantprovision

Rate in force Rate of 20%


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Declaration u/s 197A (1)(1A)(1C) shall not be validunless PAN is furnished therein. if invalid tax tobe deducted as detailed above.

Certificates u/s 197 will be valid only ifapplications contain PAN no.

The Deductee and the Deductor shall indicate thePAN in all the correspondences, bills, vouchers, andother documents which are sent to each other.

If invalid PAN or PAN not belonging to the deductee

is furnished deemed that PAN has not beenfurnished


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Credit for TDS for the purpose of section 199

Rule 37BA has been inserted by theIncome-tax (Sixth Amendment)Rules, 2009 w.e.f. 1.04.09


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Credit shall be given: For the year for which such income is

assessable

Where income is assessable in morethan one year credit shall beallowed across those years in thesame proportion in which income isassessable


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Credit for TDS and paid to the account of

the CG shall be granted on the basis of:

Information furnished by thedeductor

Information in the return of income inrespect of the claim for credit.

Subject to verification in accordance

with the risk management strategyformulated by the board


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Latest Amendments For TDS/TCS deposited by book entry,

5 digit number generated by TIN for

DDO record of accepted Form 24Gstatement will be quoted in Transfervoucher field. This value will beprovided by the Accounts Officer to the

deductor.


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Latest Amendments Transporter transaction where no deduction

has been carried to marked separately as T.Flag T to be mentioned in the field for lower

or no deduction at deductee detail. Remarks for lower/no/higher deduction need

to be populated irrespective of deducteemode (Add/Update/Delete) in case ofcorrection statement.


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Latest Amendments Field for mobile no. of responsible person has

been added.

Any one of the contact details ofdeductor/collector is mandatory:

Deductor/collector telephone no. along with STDcode

Responsible person telephone no. along with STD

code

Mobile no. responsible person


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Latest Amendments Mandatory to quote e-mail id of

deductor/collector or responsible person.

For records marked with higher rate onlybelow mentioned fields can be updated:

PAN

Amount of payment

Date of payment


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Latest Amendments PAN compliance validation is

discontinued for Form no. 24Q (95%)

and 26Q (85%).


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15th November,2010

ANURAG MANOJ & ASSOCIATES


TDS CONTROVERSIES INTRODUCTION:

AGENTS OF THE GOVERNMENT

WITHOUT REMUNERATION ONEROUS RESPONSIBILITY

NO REWARD FOR ACTION ON

BEHALF OF THE GOVERNMENT


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15th November,2010



CONSEQUENCES FOR NONCOMPLIANCE

INTERESTS

PENALTIES

PROSECUTIONS DISALLOWANCES OF EXPENSES


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15th November,2010



NOTICE U/S 201(1)

SECTION 201

CONSEQUENCE OF FAILURE TODEDUCT OR PAY

DEEMED TO BE ASSESSEE IN DEFAULT


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15th November,2010



Interest for late deduction at one per cent for every month or part

of a month on the amount of such tax

from the date on which such tax wasdeductible to the date on which suchtax is deducted


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15th November,2010



Interest for late payment of

TDS atone andone-halfper cent forevery

monthorpartofamonthonthe

amountofsuchtax fromthe date onwhichsuchtax wasdeductedtothedate onwhichsuchtax isactuallypaid.


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15th November,2010



TIME LIMIT FOR PAYMENT OF

INTEREST suchinterestshall be paidbefore

furnishingthe statementinaccordance

withthe provisionsofsub-section (3) ofsection200.]


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15th November,2010



Consequence of non payment

of Interest Where the tax has not been paid as

aforesaid after it is deducted,[the

amount of the tax together with theamount of simple interest thereonreferred to in sub-section (1A)] shall bea charge upon all the assets of the

person, or the company, as the casemay be, referred to in sub-section (1).


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15th November,2010



Time limit for completion of

Assessment of TDS Noordershall be made undersub-section(1) deemingaperson

tobe anassessee indefaultforfailure todeductthe whole oranypartofthe tax fromapersonresidentinIndia,atanytimeafterthe expiryof

(i) two yearsfromthe endofthe financialyearinwhichthe statementisfiledinacase where the statementreferredtoinsection200 hasbeenfiled;

(ii) four yearsfromthe endofthe financialyearinwhichpaymentismade orcreditisgiven,inanyothercase :

Provided thatsuchorderforafinancialyearcommencingonorbefore the 1stdayofApril, 2007 maybe passedatanytimeonorbefore the 31stdayofMarch, 2011.


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15th November,2010



Reply to Notice u/s 201(1) Income Tax Department recently started

issuing notices u/s 201(1).

Each notice give refernece of :

-financial Year

-quarter

-RRR No Form NO


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15th November,2010



Documents

20 Latest Amendments in Tds Compliance of Notices