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Problem in tax audit

Others 533 views 1 replies

Dear all,

Please advice me on the following case:

While doing the tax audit of a client i found various expenses on which TDS was deductible but the client had not deducted the TDS

He is ready to pay the TDS amount now so that the expenses doesn't get disallowed

But the problem is that he cannot retrive the TDS amount from the deductees i.e. the parties whose TDS has to be deducted.

He has to pay the TDS from his own pocket. What will be the treatment of TDS according to the Income Tax Provisions

Thanks

Replies (1)

the deductess are bound to refund the TDS amount to the deductor.  He's not liable to pay the money from his pocket.  Yourclinet can send an letter to the AO, mentioning this issue, so that deductor is releived from his obligation.


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