Tds deposit in wrong section
This query is : Resolved
01 May 2014
Respected Experts
Our Co.booked stall in Exhibition& Invoice Amount Rs 160000.00, by mistake We have deduct the TDS in section 194 C , TDS amount has deposit & file the return.
But this case covered Section under 194(i)and Tds should not deducted bcoz Invoice amount less than Rs 180000.00
My Query is our co deducted the tds in wrong section and TDS return also filed .Please suggest me how does solve the problem
Our Co.booked stall in Exhibition& Invoice Amount Rs 160000.00, by mistake We have deduct the TDS in section 194 C , TDS amount has deposit & file the return.
But this case covered Section under 194(i)and Tds should not deducted bcoz Invoice amount less than Rs 180000.00
My Query is our co deducted the tds in wrong section and TDS return also filed .Please suggest me how does solve the problem
01 May 2014
TDS was deductible u/s 194I or should I say not deductible since the amount is below threshold limit.
Now if your revise return showing deduction under Section 194I a short deduction default will generate and if you flag the threshold flag then you can show TDS deducted and therefore party will not get the credit.
Best solution is to leave it the way the return has been filed. You have deducted TDS were it was not required to be deducted. Party will also get credit of this amount. You are in safe position revising return will complicate the matter.
Now if your revise return showing deduction under Section 194I a short deduction default will generate and if you flag the threshold flag then you can show TDS deducted and therefore party will not get the credit.
Best solution is to leave it the way the return has been filed. You have deducted TDS were it was not required to be deducted. Party will also get credit of this amount. You are in safe position revising return will complicate the matter.
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01 May 2014
Sir , i already filed the Tds return in Section 194 C 2%,and Secondly we are paid the amount to the vendor after deduct the TDS .
So, what i can do. TDS deposit in wrong section but my problem after some period they are created the any problem or not.
So, what i can do. TDS deposit in wrong section but my problem after some period they are created the any problem or not.
01 May 2014
Do not worry. They will get the credit so they should not have any problem. Now you have to make them understand that the TDS has been deposited in Government Account and they will get credit of the same. If their file is not taxable they can claim refund of the TDS amount. Not much you can do right now.
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