21 September 2007
is there any provsion under 194C where the deductee can get the certificate of lower deduction? as far as i know that in contract cases lower or no deduction certificate is only valid ofor sub-contract? one of my client is saying that his transporter ios saying that he has got the cerificate of lower deduction? is there any rememdy if the contractor refuses to be get his tds deducted? what if contractee pays tds on by his own self? in such case will he have to issue tds certificate for full amount?n the deductee will get benefit of whole amount?
22 September 2007
You are empowered to deduct income tax at source as per the provisions of Income tax Act . Your power to deduct can not be curtailed by the wishes of the deductee . However , if lower deduction certificate is produced , you can not deduct more . But merely saying about lower deduction certifcate , and not producing is not sufficient .
22 September 2007
Dear Mr. Arun, answer is yes under 194C the deductee can get the certificate of lower deduction. For more abt section 194 C, please see the file "Clarification abt 194C" Uploaded by me on the portal
22 September 2007
Sec 197(1) Subject to the rule u/s(2A) the assessing officer is satisfied that the total income of the receipient justifies the deduction of income tax at any lower rate or no deduction od income tax as the case may be the officer shall, on an application made by the assesse in this behalf,gives to him such certificate as may be appropriate (certificate u/s 197(1) of the income tax act 1961 relating to deduction of tax)
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