Dear Members,

As you aware that in the Finance Act 2021 has inserted two new section 206AB and 206CCA effective from 1^st July, 2021. These sections mandated the deduction or collection of Tax at higher rates for specified section in case of certain non-filers. Higher rate is twice the prescribed rates or 5% whichever is higher. If the provisions of section 206AA is applicable to a specified person, in addition to the provision of this section, the tax shall be deducted at higher of the two rates provided in this section and in section 206AA.

Further to remove the difficulties faced by the deductor/ collector CBDT has issued a Circular dated 21^st June 2021 clarifying that New Feature called Compliance Check for Sec 206AB & 206CCA will be enabled on the IT Website. Under Sec 206AB and 206CCA, the Deductor has to verify if the Vendor has filed the Return of Income for the Previous 2 years. If not, a higher rate of TDS will be applicable for that particular Vendor. 

Salient points of the Compliance Check Utility Features:

i)                     A New Feature called Compliance Check for Sec 206AB & 206CCA will be enabled on the IT Website

ii)                   IT Department has already compiled the list of persons for whom higher TDS/TCS Rate required (known as specified persons).

iii)                  Deductor needs to check if the Vendor has complied by feeding the PAN Number (Bulk PAN Search facility also available)

iv)                  If Vendor is not part of specified persons, than no need to do Higher TDS rate - to check this only once in a year

v)                   Where a Vendor has been part of specified persons, the Deductor to check before each transaction as the Vendor will move out of the specified persons list only after compliance.

FFFAI has organized webinar with Eminent Advocate and Tax Consultant Mr. K. Vaitheeswaran who will explain the members in detail about the new section inserted by Income Tax Department which will help the members in understanding the implications of the section.

Day & Date: Tuesday 29^th June, 2021

Time: 04:30 pm

Registration Link: https://us02web.zoom.us/webinar/register/WN_awR6UISZQR2e6fz2-ujemQ

Please find attached herewith the flyer invitation to participate in the webinar.

After registering, you will receive a confirmation email containing information about joining the webinar.

Looking forward for members to participate in the large number.

With Warm Regards,

Dushyant Mulani

Honorary Secretary