24 March 2012
The Co has made provisions in the books for professional fees on 31-3-2011 and paid TDS accordingly. However, subsequently when actual billing is done, it was observed that there was excess provision and TDS is paid in excess. Whether the excess provision of previous can be reversed in the current year and the excess TDS of previous year be adjusted against current year TDS liability??
24 March 2012
In respect of excess Provision for professional fee made in the previous year can be reversed in the current year.
However in case of excess TDS deposited in the previous year cannot be adjusted against the liability of the Current years TDS. There is no such provisions in the Income tax Act /rules.
But assessee can apply for a refund for excess TDS deposit subject to that the assesee have not issued a TDS certificate to deductee(s) in respect of excess amount deducted.After getting application department can adjust the TDS against tds Deductible or can issue refund order Department has issued a Circular 285 dated 21.10.1980 in this regarding procedure for excess TDS refund
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