Our company had paid one Bill amt of Rs.38,080/- to one Contractor(Company)(Lift AMC), but we have not deducted TDS 2% on the same and done full payment, we have request to the vendor for give Chq of Rs.762/-(TDS amt) but they had refuse. If we do payment of TDS from our pocket, then it will our expense as well as that company will also take TDS credit for the same amt.
what will be the alternate solution for TDS liability we can do for the above case.
20 September 2019
If you fails to pay TDS , expenses of rs.38,080/- will be disallowed in IT Memo by statutory auditors. Moreover there is chance of indicating that TDS not deducted in all applicable cases in auditor report.
More over from seeing the supplier accounts, Income Tax department may check the revenue earned and TDS deducted and find out the difference where TDS not deducted. If so, there is possibility sending notice to you.
My suggestion is to convince the supplier for repaying the TDS amount to you and remit TDS. If this is not possible, please pay and account in Miscellaneous expenses.
Please also keep in mind TDS 194 C is applicable if single bill exceeds Rs.30,000/- or the total value of transaction exceed Rs.1,00,000
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