My Co. received a bill of Rs 2,80,900 from ABC ltd as professional fee,After deducting the TDS we paid the rest amount to the ABC ltd and the calculation is
Bill Amount: Rs.2,80,900 TDS @10.30%: Rs. 28,933 Amount Payable: Rs.2,51,967 But instead of this my co. deduct the TDS @11.33% and paid the rest amount
Now my question is 1.how i can adjust the excess TDS and how the Deductee get the rest amount.
16 January 2008
you can adjust the excess amount of tds in the same head with another professional. and accordingly you can refund the balance to the client. but if you give return for the same amount of tds to that party than you can give refund to him
17 January 2008
I think you have deducted right amount including surcharge also.so there is no question for Refund ,But if the Deductees is not under surcharge u can refund him exces amount after getting adjust the excess TDS Under other Deductees
18 January 2008
If the receipient is an individual/HUF/BOI/AOI aggregate of payment or credit subject to tax deduction does not exceed RS.10,00,000/- and in other case like company(domestic),Firm, co-operative society does not exceed rs.1,00,000.
18 January 2008
But one more thing rmember U need not to adjust the amount even if Sch is not applicable to deductees bcoz the amount deducted is to be adjustable at the time of IT return filing.
Imp. If u have filed the qUARTERLY RETURN FOR tds DEDUCTED u need to revise the return if U want to return the excess amount to your paty & want to adjust the exces tds with other deductees.
18 January 2008
You can adjust the excess amount against your liability. But the adjustment should be in that particular quarter only
The ETDS software provider can you guide you for errors reflected due to this adjustment. Nothing to worry it is only a matter of presenting your facts
28 February 2008
Mr Saroj, if you want to adjust the excess TDS deducted, then it is possible if u receive bill from same party in the same financial year. However, i do not find any issue as because if TDS has been excess deducted, it can be claimed by the party in his return.
CAclubindia
