tds query urgent

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This query is : Resolved

Arun Shah (Querist)

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?

thanx
C.A. Arun Shah

Arun Shah

Arun Shah (Querist)

21 September 2007 plz resolve

Late CA Sampat Jain

Late CA Sampat Jain (Expert)

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 .

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)

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

AjeshkumarM.P

AjeshkumarM.P (Expert)

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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