TDS - RECONCILIATION

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SREELALITHA V (Querist)
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22 September 2008 MY CLIENT IS A LABOUR CONTRACTOR. EVERY MONTH BILL IS RAISED ON I DAY OF NEXT MONTH. FOR THE YEAR 2006-07 12 MONTHS BILL IS ACCOUNTED ON 1 APRIL 06 -- 1 MARCH 07. BUT OUR CONTRACTEE IS TAKEN THE BILL RAISED ON 1.4.07, [WHICH RELATES TO 07-08] TO 31ST MARCH 07 AND DEDUCTED THE TAX ON THE BILL RAISED ON 1.4.07. HENCE THE TRNOVER SHOWN IN FORM 16 A AND BOOKS OF ACCOUNTS DIFFERES AND TURNOVER SHOWN IN THE P/L A/c IS LESS COMPARED TO TDS CERTIFICATE BY RS. 5 LACS. IN THE MEAN TIME MY CLIENT HAS RECEIVED A NOTICE FOR SCRUTINY ASST.

WHAT WOULD BE THE CONSEQUENCES. HOW I CAN DEFEND WITH THE ITO. IS THERE ANY SPECIFIC CASE STUDY / CIRCULAR IN THIS REGARD.
PLEASE HELP ME SINCE I HAVE TO ATTEND BEFORE THE ITO SHORTLY.

WAITING FOR VALUABLE REPLY.

CA E.A.Ravikumar

CA E.A.Ravikumar (Expert)
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23 September 2008 Your contractee had credited sums on 31st March and deducted tax.

He cannot account your bill dated 01-04-07 on 31 march itself.

The total sum paid/credited as per your books and as per form 16A will definitely be different.

Since your contractee had deducted and remitted the tax, you can claim credit for the same in your computation.

Authorities would have come across so many instances like this and do not worry. Exlain the facts.

SREELALITHA V

SREELALITHA V (Querist)
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23 September 2008 mr. ca ravikumar

thanks for your reply. pl. send any case study / cbdt circular you come accross in this regard,