Adjustment of excess TDS deducted

Save Share

This query is : Resolved

Saroj Rana (Querist)

16 January 2008 Dear all,

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.

If possible give entries

Thanks in advance

CA vikash Jain

CA vikash Jain (Expert)

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

Saroj Rana

Saroj Rana (Querist)

17 January 2008 Pls provide the accounting entries

CA Anil Jain

CA Anil Jain (Expert)

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

Saroj Rana

Saroj Rana (Querist)

17 January 2008 thanks,
one more thing

How one can evaluate,wheather surcharge is applicable or not.I know the surcharge limit but didn't know the evaluation procedure

CA Anil Jain

CA Anil Jain (Expert)

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.

CA Anil Jain

CA Anil Jain (Expert)

18 January 2008 that is 1 crore (1,00,00,000)

CA Anil Jain

CA Anil Jain (Expert)

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.

Dayal

Dayal (Expert)

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

CA. GOPAL SONIKA

CA. GOPAL SONIKA (Expert)

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now