UTN - Tds deducted without pan nos

[Rahul Bagaria]

As per new CBDT circular 'UTN' needs to be provided for FY 2008-2009 in all the cases.While deducting TDS we did not had PAN numbers in few cases.Also there were some reversals at individual vendor level which we adjusted in totality.Please suggest how should we approach way forward.

[Ravi Chopra]

The issue is amount various issues which awaits a proper and justified reply from the CBDT. But where the issue of reversal is there, once you deposit the amount of TDS with the income tax authorities, there is other option but to provide him the TDS certificate and he would take the benefit of TDS while filing his return.

[Ravi Chopra]

In addition to my above reply the concept of UTN introduced to address the situation where the deductee does not have PAN. In such a situation he can take the benefit of TDS in future, if he wish and he can, on the basis of UTN.

[madhavvan n]

what happens in a case wherein subsequent qurter it is found that there has been a mistake and we reverse the partys invoice with tds this will result in excess deduction and can be adjustted agsint liability for the quarter or subsequent quarter in no case will tds certificate be issued as the partys invoice has been cancelled and party also cannot accrue that income in his books and he will also not get credit for tds

AI Summary

UTN for TDS without PAN enables deductee to claim credit when filing; reversals adjust liability and prevent certificate. A UTN must be provided where TDS was deducted but the deductee lacked PAN; after depositing such TDS the deductor should issue a TDS certificate so the deductee can claim credit using the UTN when filing returns. If invoices and TDS are subsequently reversed, excess TDS should be adjusted against the deductor's liability in the same or a later period, and if the income is cancelled no TDS certificate is usually issued and the deductee cannot claim credit.