23 February 2011
I have deducted tds of contractor for advertisement advance given to him in jan 2011 & paid the tds on due date but after due date the said advertisement was canceled & vendor has refund the amt. which was given to them.(i.e. after dedication of tds) My qurry is a) can i adjust the tds paid in feb.11 against the dues of feb.11 which is payable in mar 11 irrespective of checking the deductee as company or non company. b) what will be the process if i have paid the advance in dec.2010 & subsequtnly the contract get cancelled. i.e. after filling the q3 retrun of tds what is the process i need to follow.
24 February 2011
(a)You can adjust TDS with same nature of payment and taking care of same status of deductee.
(b)As you have already filed return for dec. 2010 q3 so credt of TDS has alresdy given to the contactor so now in this situation you can give him TDS certificate and claim refund of payment from him.
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