TDS deduction

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This query is : Resolved

Saroj Rana (Querist)

24 March 2008 Dear Members

Plz solve this Query

My Co. wrongly deducted the TDS from the party means the said party was an real estate broker so insted of sec 194H, I had deducted under sec 194I @20.60%.

So, how can i deposit the TDS amount(i.e in Bank) and how can I set up this problem?. How can the party will get back the excess amount????????

Plz give proper solution

Late CA Sampat Jain

Late CA Sampat Jain (Expert)

24 March 2008 Wrong amount debited to party and credited to TDS account for TDS , can be rectified by rectification entry , because the TDS is still to be paid.

Saroj Rana

Saroj Rana (Querist)

24 March 2008 Plz clarify

CA Praveen Chopra

CA Praveen Chopra (Expert)

24 March 2008 Mr sampat mean to say that if the tds amount is yet to be paid than just rectify the mistake by entering a rectification entry.

Prasad R

Prasad R (Expert)

24 March 2008 yes pass a rectification enrty for the same and refund the excess amount deducted to the customer account.
Debit: TDS Payable U/S 194 I with the amount of TDS wrongly deducted
Credit: TDS payable U/S 194 H with the amount of TDS that should actually had been deducted.
Credit: Party A/C with the difference.

After this entry the balances in the TDS payable and the party account would be set right.
Now pay the party the excess TDS amount (as is credited to the party A/C in the entry above) that was wrongly deducted from him.
Regards
Prasad.R

Saroj Rana

Saroj Rana (Querist)

25 March 2008 thanks

so what steps should be followed at the time of deposit (TDS amount)

Saroj Rana

Saroj Rana (Querist)

25 March 2008 plz help me out

RICKY

RICKY (Expert)

25 March 2008 You have to pay the deducted amount to central govt. (in bank) through a challan. in that challan you have to mention all the details about on what status you deducted.

That challan format will be available in www.incometaxindia.gov.in

Saroj Rana

Saroj Rana (Querist)

25 March 2008 Should I fillup the amount which i have wrongly deducted?????????????

MANAS ROUT

MANAS ROUT (Expert)

25 March 2008 you have to fillup the challan as per correct head and as per the required rate.

Saroj Rana

Saroj Rana (Querist)

25 March 2008 Thanks,
But there is another problem my boss had already handed me the TDS cheque with the wrong amount to deposit,so, what can i do now???????

plz give some solution

yogesh

yogesh (Expert)

26 March 2008 The very first sollution is arrange a new check of right amount. but due to some reason if this is not possible, you can deposit excess amount. here you can deposit excess amount against those head in which you think that in future there will be further deduction. you can adjust this amount in future against liability of that time.

Saroj Rana

Saroj Rana (Querist)

10 April 2008 thanks