Tds on technical fees

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 February 2012 Company has taken a leased line broadband connection from TATA on which tds is applicable under 194J - technical fees. But company has bymistake made the cheque in the name of some other vendor who has provided telephone connection etc service to the company. The company has requested the vendor to make payment to TATA on behalf of the company.But the issue is who will be responsible for deducting tds? what if vendor denies to deduct tds and how can company make arrangements to deduct tds?

Krishna Mohan

Krishna Mohan (Expert)
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29 February 2012 The broadband charges are expenses to the Company and not to the vendor. So, the company has to deduct TDS. Now, the vendor can make payment to TATA after deducting TDS and make TDS payment using Company TAN.Vendor will be doing all this for and on behalf of the Company.

Querist : Anonymous

Querist : Anonymous (Querist)

29 February 2012 The vendor denies to make such deduction stating that if TATA will not get full payment, they will face temperory disconnection of DATA connection which will hamper their communication and not affordable to them.
Is that so? can TATA object such part payment even if it is on account of TDS>

Querist : Anonymous

Querist : Anonymous (Querist)

Krishna Mohan

Krishna Mohan (Expert)
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29 February 2012 The vendor can do this without any problem. If this is not feasible, ask your vendor to return back the amount to Company and the Company can do this TDS exercise on it's account.

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Querist : Anonymous

Querist : Anonymous (Querist)

29 February 2012 The vendor has already paid TATA. Is there any solution to this now?

Guest

Guest (Expert)

01 March 2012 The solution for company to avoid penal action is to deposit the tax due to Govt treasury within due date because the responsibilities attached with tax deduction provision rests on deductor hence payment to third party by mistake will not be sufficient reason to avoid payment of tax to be deducted.