Advance tax paid -so no need to deduct TDS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 March 2010 we have a client which is a partnership firm and the partners paid advance tax for the first and second quarter, later it is converted into a company in the middle of financial year and they have become directors of the company
Now the company has to deduct tds on the salary paid to directors but the advance tax paid is adequate for the Tax payable for the year
So directors doesnt want tds to be deducted
Is there any case law on this.....Please reply

CA Prashant Gupta

CA Prashant Gupta (Expert)
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08 March 2010 as per TDS rules you have to deduct TDS. no exemption.
but in Wipro GE Medical Systems Ltd v ITO (2005) 3 SOT 627 (Bang.) it was decided that no penalty can be levied on the assessee-payer for the failure to deduct tax at source. But this help in escape penalty only. if you didn't deduct TDS then exp will be disallowed.

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