Penalty u/s 272 A(2)(c)

[Sneh K]

The assessee had paid freight of ₹ 9,00,000/- in Fy 2011-12.PAN was received from transporter, hence no TDS was deductible.

However, the details of transporter were not furnished with TDS return, which attracted penalty u/s 272 A(2)(c). But penalty in this case is ₹ 100 per day for which default continues maximum upto TDS liability. TDS liability in this case is NIL. So, what will be the penalty amount leviable?

AI Summary

Penalty for non-furnishing of deductee details: assess interplay between daily penalty and a nil TDS liability. The assessee obtained the transporter's PAN so no TDS was deductible, but failed to furnish transporter details in the TDS return, attracting penalty u/s 272 A(2)(c), which is prescribed as a daily amount subject to a maximum tied to the TDS liability; the central question is what penalty is leviable where the TDS liability is nil.