CII asks for simplification of corporate TDS

NEW DELHI: Industry body CII on Thursday asked the government to simplify the provisions of Tax Deducted at Sources (TDS) for the corporate sector.

There are a number of provisions of TDS, such as stipulations, rates for TDS exemption limits etc, which need to be rationalised under a single section, CII said in a release.

It said tax authorities take a conservative view under section 195, resulting in blocking of money in TDS of non-resident contractors due to high estimate of profits. Excess amounts are refunded only on filing of returns along with the refund claim.

To avoid hardships to non-resident taxpayers, CII asked for framing of clear guidelines for deduction of out of contract payments.

Banks should be allowed to opt for a centralised jurisdiction for deposit of TDS, issue TDS certificate in Form 16A and filing of consolidated TDS returns, it added.