Tds not deducted

This query is : Open

Dhaval (Querist)
Follow

26 October 2012 We have booked the bills of more than 5 lacs for contract charges to one party on several dates during F.Y 2011-12.
But we have not deducted TDS at all and also we have made the full payment to the party.
And we are not going to have any further transaction with this party.
Now do we need to deposit TDS from our own pocket & issue form 16A or what?

CA Amit Jaiswal

CA Amit Jaiswal (Expert)
Follow

26 October 2012 TDS should have been deducted.

In order to avoid any notices you should deposit it out of own pocket.

CA Kishore Tallam

CA Kishore Tallam (Expert)
Follow

27 October 2012 Yes. TDS should be deducted now and the same should be borne by the Company. In light of the present provisions, interest on TDS need to be deposited before filing TDS return.

prasad

prasad (Expert)
Follow

28 October 2012 Sir,in my opinion, the has to bear the TDS amount. If not the whole transction will be disallowed in the hands of the company.

Secondly, if the contractor has not provided u his PAN number then, the TDS has to be deducted @ 20%. And pay the TDS amount along with interest.

Dhaval

Dhaval (Querist)
Follow

29 October 2012 But that party has fully met its tax liability by paying taxes.
Now if we deduct TDS and issue form 16A then does it not result in giving double benefit to that party?