TDS ON PROFESSIONAL

This query is : Resolved

Nitin Bhatt (Querist)
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28 April 2011 DEAR EXPERTS,

IF WE DEDUCT A CLIENT TDS ON PROFESSIONAL SERVICES(194J)(RS.20000/-) IN IIIRD QUARTER, BUT ACTUALLY IT WAS WRONGLY DEDUCTED ACTUALLY IT WAS EARNEST MONEY DEPOSIT(RS.2,00,000/-),
NOW IN THE FOURTH QUARTER WE HAVE TAKEN SERVICES FROM THEM RS.1,50,000/- IN WHICH TDS IS APPLICABLE RS.15000/-, CAN WE ADJUST THE SAME AMOUNT (20000/-) AS WE EARLIER WRONGLY DEPOSITED TO I.TAX DEPTT. WITH THIS FOURTH QUARTER TAX LIABILITY WHICH IS RS.15000/-, ALSO REPLY WHAT WILL BE THE TREATMENT OF REMAINING RS.5000/-(20000-15000).
THANKS,
NITIN BHATT

CA Punit

CA Punit (Expert)
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28 April 2011 yes it can be adjusted...

& no treatment for excess deduction.

the deductee can claim credit of the whole TDS amount of 20000

other opinions will be appreciated

madhur gupta

madhur gupta (Expert)
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29 April 2011 I am not sure about such adjustments
as it is mention in TDS provisions that TDS has to be deducted AND deposited the same with govt.
but since there is no such provision with regard to adjustment so benefit can be taken
I request other members to suggest their views
thx

PARDEEP KUMAR AGGARWAL

PARDEEP KUMAR AGGARWAL (Expert)
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29 April 2011 From best of my knowledge & practice we follow, TDS earlier deducted in excess may be adjusted in the coming period irrespective of the different quarters. Yes it is correct that even when there left some un-adjusted amount, it can not be settled. the deductee has to claim himself/herself the rest amount while filing his/her return.

Pankaj K Gupta

Pankaj K Gupta (Expert)
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30 April 2011 Dear Mr Bhatt,
While my friends have all stated is true, in case you have not issued TDS Certificates, what you may do is that Deduct TDS from other deductees (if there are any) and show that Deposit (Rs 5000) against those deductions. Submit revised quarterly returns for that quarter / Quarters and issue TDS accordingly.
It should not happen that you issued TDS certificates and then revise returns to negate those Certificates. This is done by alll bulk TDS Depositors.
Yes, in case you do not have other dedcutees, then what my Other Cooligues stated is true.

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