TDS Rate in case of no PAN – Section 194J

This post  provides the TDS rate in case of no PAN is provided by the recipient .

TDS Rate in case of no PAN – Section 194J 

TDS shall be deducted @ 20% in case payee has not furnished his PAN with the person responsible for deduction tax i.e. deductor.

Illustrations

 Example 1:

A lawyer has rendered legal services to CVV India Pvt. Ltd. during PY 2018-19. He charged Rs. 15,00,000 for the services rendered by him. How much tax shall be deducted u/s 194J, if CVV India Pvt. Ltd. does not provide PAN to the lawyer ?

Solution:

While the regular TDS would have been Rs. 150,000, in the given case, TDS shall be deducted @ 20% on Rs. 15,00,000 i.e. Rs. 3,00,000

 

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