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Query on TDS

sristi srivastava (COST ACCOUNTANT) (113 Points)

27 January 2011

IF TDS IS DEDUCTED BY DEDUCTOR AT A LOWER RATE AND THEN SUBSEQUENTLY A DEMAND ARISES FRON THE AO FOR THE REMAINING AMOUNT THEN CAN THE DEDUCTOR DEMAND BACK THE SAME AMOUNT (THAT HE PAID AS DEMAND) FROM THE DEDUCTEE? DOES DEDUCTOR HAS A LEGAL RIGHT TO DO SO IF YES UNDER WHICH SEC.?

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U S Sharma (glidor@gmail.com) (21056 Points)
Replied 28 January 2011

Originally posted by : sristi srivastava
	IF TDS IS DEDUCTED BY DEDUCTOR AT A LOWER RATE AND THEN SUBSEQUENTLY A DEMAND ARISES FRON THE AO FOR THE REMAINING AMOUNT THEN CAN THE DEDUCTOR DEMAND BACK THE SAME AMOUNT (THAT HE PAID AS DEMAND) FROM THE DEDUCTEE? DOES DEDUCTOR HAS A LEGAL RIGHT TO DO SO IF YES UNDER WHICH SEC.?

under same sec of TDS the shortfall can be covered, but if the person has submitted his returns on the strength of TDS certificate, then deductor has to bear the burden ..he may issud debit note , but as the deductee cant claim it now so he will not bother to honour the fault of deductee.