tax deduction at source

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shubha (Querist)
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19 June 2008 hi,
suppose a company has paid excess tds on any payment.. eg in may they hav paid excess for april.. can they set it off for the next month? i.e for the month of may.. wen they hav to pay in june.. can they set it off the excess payment made in may and pay only the balance?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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19 June 2008 Yes, provided the adjustment is made in respect of the same payee.

Shekar

Shekar (Expert)
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19 June 2008 Hi Shubha..

U mean to say while making payment to any creditor, u have deducted TDS in excess and have remitted the same to the department...if that is the case u can set it off with next payment to that party by deducting less TDS to the extent of Excess deduction made last time...

shubha

shubha (Querist)
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19 June 2008 so do u mean to say that only if it is for the same payee it can be set off?

CA Vivek Jain

CA Vivek Jain (Expert)
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19 June 2008 Yes adjustment applicable but shown accordingly in return

shubha

shubha (Querist)
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19 June 2008 wat r the consequences if they pay it all in lump sum.. setting off the excess amount n paying only balance?

Shekar

Shekar (Expert)
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19 June 2008 See...If u have 3 parties with whom u have contracted for labour work..

While making payment to these parties..u wont deduct TDS on aggregate labour charges of all three parties..U will deduct TDS individually depending on Limit to deduct TDS..

So while doing this if u have deducted Tds in excess to any one party...u can adjust it only with payment of that party itself..

While Remitting TDS amount to Government u can remit it in lumpsum but while accounting it u have setoff it with that payee it self...

shubha

shubha (Querist)
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19 June 2008 thank you

CA Vivek Jain

CA Vivek Jain (Expert)
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31 December 2008 thank you

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