30 May 2008
Dear Experts Please resolve the query regarding Section 194C. One of the Pvt Ltd company made Advance Payment of Rs 10 crores on 01.04.2007 to an advertisement agency for availing Advertisement services from advertisement agency. Tds has been deducted on Rs. 10 cr and deposited as per law. During the fy 7-8 total advertisement bills raised by adv agency are Rs 9 crores. Now Whether TDS need not be deducted on Rs. 1cr bills to be raised in next financial year or whether refund of tds can be obtained for extra tds deposited w.r.t fy 7-8. what would be solution if adv agency has returned rs 1 cr during the same fy.
According to provision of TDS..TDS to be deducted on Payment or Credit which ever is earlier...Company has done right thing by deducting TDS on Advance..now if they return 1 crore..advertisement agency can always claim refund of TDS on tht 1 crore during filing return..
30 May 2008
Rightly said : 1) TDS need not be deductedon Rs. 1 crore bill to be raised in next financial year
2) As pointed by Mr. Shekhar tds need to be deducted on payment/credit whichever is earlier. TDS on Rs. 10 crore was rightly deposited. There is no extra TDS and question of refund of TDS does not arise.
3) Refund by the advt agency, if any, does not have any impact on TDS deducted and deposited.
CAclubindia
