06 December 2008
Dear sir my query is as follows: One of our party taken lower taxtation of rent under section 1941 which cover our name too. We at head office was unaware of agreement between us and party. on reading the same we find that we had a agreement of agency not rent with the same. MY query is
We booked the entry as rent and deduct the tds @ lower rate 1.13% from 1.8.2008 to till oct 08. now in the month of novemeer we from november 08 booked the same under the head commission as per agreement and deduct the tds @ 10.3%. MY question is what we have to do with the earlier payment we made with lower taxtation and under the head rent. and how we can provide the tds certificate .
You have to deduct tds now for short deduction i.e. 9.17% and issue a certificate, reason being short deduction of tax amounts to offence and which results in penalty & imprisonment.
CAclubindia
