Tds

This query is : Resolved

CA Saxena (Querist)
Follow

04 February 2013 In case a company has not deducted TDS on onetime payment of technical fee Rs 41000 in FY 2011-12. now-

Since for onetime vendor payments, TDS from vendors cannot be collected. Therefore, we just disallow them and revise our return -
i) What are the penal consequences for non deduction of TDS apart from just disallowance of expense?
ii) Will this lead to any deferred tax expense/ income (Asset/ Liability) consequences?
iii) Generally what would be more suitable if the TDS cannot be recovered - pay it out of our pocket or just disallow the expense?

CA Prashant Gupta

CA Prashant Gupta (Expert)
Follow

04 February 2013 all reply is in one
don't take tension. if u didn't collect tax then pay from your pocket (means co pocket)
main purpose is to collect tax. I have done it myself. I deposit with interest and no notice or panelty came.

CA Saxena

CA Saxena (Querist)
Follow

06 February 2013 what if the amount of TDS is huge and the client is not ready to bear the expense.

what will be the penalty and other procedings in case we dont pay?

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
Follow

08 February 2013 Penalty for failure to deduction of Tax at Source u/s 271C - a sum equal to the amount of tax which such person failed to deduct or pay as aforesaid.

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
Follow

08 February 2013 It would be more logical to deduct tax and then deposit from our own pocket.

CA Prashant Gupta

CA Prashant Gupta (Expert)
Follow

08 February 2013 as CA Suraj said " penaly is equal to TDS"
and expense will be disallowed also
so as i told first " pay TDS from your pocket (Co pocket)"

Message likes : 2 times

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
Follow

08 February 2013 If expense is disallowed, the tax impact would be as high as 30%. And it is more of a question of compliance with the tax laws as a good governance.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Lalan Kumar Jha

Sabyasachi Mukherjee

Poojitha Raam Vinay

Mukesh Singh

Krishna Kumar A

Subscribe Now

Tds

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final