Tds payment on behalf of deductee

This query is : Resolved

VAISHALI (Querist)
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07 May 2013 Sir,

I had paid Rs. 10 Lakhs towards Donation in the month of Aug'12. In the month of April'13 i came to know that payment was against sponsorship and not Donation , please advice for the following Queries.

(1)Weather TDS is Applicable? If Yes, than what will be the Interest & Penalty.

(2)If Deductee is disagree to give refund, weather to file TDS Return? and if the Deductor file the TDS return he will get Tax benefit. as the TDS will be paid by Deductor.

(3) If TDS to be deducted From August'12 than which Quarter Return to be Revised?

(4) Please Advice related provisions.

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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07 May 2013 yes TDS is applicable on Sponsorship Services

Interest will be @1 % from the date it was deductible to the date of deduction

& 1.5% from the Date of deduction to the date of payment

penalty will be at the discretion of AO

if deductee disagree then deductor will have to adjust the payments & TDS

deductor will get the benefit in the form of expense (as more amount will be allowed as expense)

the date of deduction should be reckoned for the Quarter to be revised

i.e if you deduct in march then in 4th Qtr

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VAISHALI

VAISHALI (Querist)
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07 May 2013 Thank u for your prompt reply But i am still confused about which return to be revised 26Q2 or 26Q4? as i am going to pay Tax+Interest from August'2012

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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07 May 2013 if you revise the 26Q4

in the return there are two dates

1st is Date of Payment/Credit

2nd is Date of Deduction

VAISHALI

VAISHALI (Querist)
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07 May 2013 According to u which return to be Revised?

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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07 May 2013 its up to you

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