Tds returns

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 December 2012 i had filled the tds returns for A Y 2012-13, under section 194(I), the client hires the machinery so he deducted TDS at 2%, we filled the return but the income tax office send the notice of short deduction & said to deduct the TDS at 20%, we are already deducted the TDS & also issued the TDS certificate , now tell me what to do ?

CA Chirag Haraniya

CA Chirag Haraniya (Expert)
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10 December 2012 Reply to the notice that your client has hired Machinery therefore he has rightly deducted TDS u/s 194I @2% on value of rent.

Provide copy of bills alongwith your reply to avoide future hassle from Income Tax Department.

Chirag M. Haraniya

srinivasan

srinivasan (Expert)
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11 December 2012 The notice is issued proposing 20% TDS means the PAN quoted is invalid. You need to get the correct pan from the vendor and file a correction statement with the tin facility centre and file the acknowledgement copy to your TDS officer seeking to pass a rectification order u/s 154 and get the demand nullified.