Tds

This query is : Resolved

aman (Querist)
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02 August 2012 Is it necessary to deduct tds on every transaction with d party whom tds has deducted once..??
What is the case when tds has been deducted when it was not requird to deduct the tds...???

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
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02 August 2012 Dear Friend, It is not necessary to deduct all time TDS of a client , whose TDs you have deducted earlier. Please see the exemption limit provided for each case , while deducting TDS. Thanks

VIJENDRA DARGAR

VIJENDRA DARGAR (Expert)
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02 August 2012 1. It is not necessary to deduct TDS on each and every transaction. If you have deducted TDS more than what is required, then you can leave the transactions without deduction adjusting up to the excess amount you have earlier deducted.

Also, It is not necessary to deduct TDS on every transactions with the party to which you have deducted TDS once. What is required is to ensure that you have deducted TDS in accordance with the threshold limit and rates specified applicable to particular year.

2. If you have deducted TDS wrongly, then you can refund the amount to payee if not deposited and If deposited then amount can be claimed for refund from IT department only.

CA Prashant Gupta

CA Prashant Gupta (Expert)
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02 August 2012 as per Act, there is no need to deduct TDS on every transaction. like if you pay a contractor 35000 and deduct TDS. next time pay only 5000 then no need to deduct TDS. But normally companies deduct TDS on every trasaction because after some time it can cross the exemption limit. so only for safe side companies do it. But it is not necessary by act as above example show.
if you have deduct excess or wrong tDS then if not deposited you can refund the party. but if it is deposited then give form 16A. they can get refund from deptt. no other way

aman

aman (Querist)
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02 August 2012 Thank u oll...dis is very helpful to me

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