16 September 2009
Hi. the licensee has deducted TDS at 10.3% which actually should have been 16.995% on the rental income. he wants me to now to refund him the amount which he did not deduct and only on doing so will he provide me the TDS certificate. I want to know whether i need to abide by it or not, since i have already paid a good amount of advance tax due to the licensee's mistake of deducting less tds.
17 September 2009
It is the liability of the deductor to deduct correct TDS and if he had made a mistake he has to correct it. Even if you had paid the tax on the income it does not reduce his liability to deduct the correct Tax. You can always take a refund but your deductor has the risk of expenses being disallowed for not deducting TDS. So, you should co-operate and take the TDS and claim refund. Atleast you have the recourse of taking refund of excess paid.
CAclubindia
