TDS for payment towards software licence

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This query is : Resolved

yogesh vijaykumar shah (Querist)

01 September 2010 We have made the payment to party in the month of July, 2010 after deducting 2% assuming contract payment. But lateron the party has given the lower deduction certificate duly issued from Income Tax Dept stating the period therein 12-08-2010 to 31-03-2011 having 2.5% TDSA. This means that the payment which is made by us in July, 2010 after deducting 2%. In fact TDS should be deducted at 10%. The challan is also made stating section 194C.

Please advise me what can we do for rectification of mistake.

CMA Chandan Singh

CMA Chandan Singh (Expert)

01 September 2010 Deduct the balance amount of TDS i.e 0.5% in next payment & inform your AO about mistake of wrong deduction of TDS under contract payment.

wait for other advise.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)

01 September 2010 can you clarify, under for which section the lower deduction certificate is issued ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

02 September 2010 You can deduct the balance in further payment, But what ever paid u/s.194C can be changed is challan having this deduction only, other wise,Just you correct the tds return as 194J with same challan, while getting the Intimation, you can explain the mistake through letter to the department

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