TDS Deducted On Audit Fees

Save Share

This query is : Resolved

sreenath (Querist)

22 May 2010 Dear Sir,

Please Give me Some Guidance on TDS .

One of Our Client Has Paid audit Fee Rs.82455 for The Financial year 2008-09 and the TDS is Deducted @ 10.3%. The audit Fee & TDS Provision is Provided for the Financial year 2008-09 i.e 31.3.2009 and the same is Paid on 28.08.2009 both audit fee and Tds Also remitted to Income Tax Account. Now the Problem is Arises, the Auditor given the bill for Audit Fees on 20.8.2009 the accountant have no knowledge about finalization of accounts the audit fee bill given is entered again on bill date i.e 20.8.2009 on that he has deducted 10.3% tds and remitted to the Income Tax (there is no Liability because it is already Provision Created)account, for the same expenditure he is remitted without deduction on (i.e. the first audit fee after TDS Deduction is fully Paid )audit fee. Please Suggest me on this Query Very very Urgent

Please experts give me some Guidance it is Refundable or not from the income tax Dept or is there any Adjustment is Possible or not in the financial year 2009-10 PLEASE Help me Very Urgent

Shyam Lal Naik

Shyam Lal Naik (Expert)

22 May 2010 TDS deducted and remitted twice.

Possible Solution :

1. Refund can be claimed, or
2. TDS certificate can be issued to the auditor, so that the auditor can claim in its IT return. The gross amount can be taken as zero.
3. The amount wrongly paid can be adjusted with any other TDS liability. Your client can write to the AO(TDS) to change the Section Code, if required.

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