08 May 2008
dear all we went in to contract and we paid advance of Rs 10 lakh. on which we deduct and paid to goverment. we also file tds return. now the contract is cancelled as the party was bogus. now we are demanding refund of money from party. but what about tds which we deposit in Goverment? can we revised the return and claim refund of tds from goverment ? what to do? please suggest how i can recover my payment in tds. thanks in advance
09 May 2008
I think there is no way in income tax by which you can get refund from department on this transaction. You paid for a contract so there was liablitiy to deduct tax which you fulfilled. The party being bogus does not stand in income tax, it is simply that contract between two parties is not completed.
Now, in my opinion what you can only do is to recover the TDS amount from party itself alongwith principal amount. You issue them TDS certificate and receive your full money back. You can sue them if they refuse to pay full amount (including TDS) as breach of contract is done on their part.
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