Short tds deduction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 October 2015 Dear experts,
We have made payment of rs. 90000 for professional service, however miskakenly we haveo deducted 1% TDS instead of 10%, when it came in my consideration then i have issued the debit note to service provider to pay balance TDS amount but the service provider has refused to pay balance TDS amount, plz guide me do we need to pay balance TDS with 1.5% interest if i do so the service provider will take the credit of full 10% and if i dont pay the balance TDS then what will be consequences,

Regard
Mohit Gupta

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 October 2015 If you don't pay balance TDS with 1% interest 30% of 90000 will be dis allowed while calculating tax working.

Querist : Anonymous

Querist : Anonymous (Querist)

27 October 2015 sir. suppose if i don't pay balance TDS however if i take the service provider return along the ledger provided that this 90000 has been consider in his return as income then i think it won't be disallowed....

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 October 2015 Dis allowance will be there but you will not be asked to pay the TDS short fall.

Querist : Anonymous

Querist : Anonymous (Querist)

27 October 2015 sir weather it is to be dis allowance u/s 40(A)(IA) as per this section only 30% of 90000 should be disallowed also clarify the CA certificate 26A cannot avoid the dis allowances

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 October 2015 CA certificate can avoid dis allowance.

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