Tds under section 195 - ltcg

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2014 One Long-term asset purchased from a Non-resident and amount was paid total in the FY 2010-11.
Now the department sent notice for non deducting the TDS on such payment.

My question is, whether TDS deduction is compulsory on the above transaction.

The non-resident also filed the return with in the due date by reporting the sale consideration and payment of tax amount.

Thanks in advance.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 February 2014 yes it is required for you to deduct taxes under 195.

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Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2014 Thanks Mr. Kaushik, but how can we deduct the TDS now , as the transaction belongs to FY 2010-11.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 February 2014 there is no bar on tds deduction. you can do it now too.

Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2014 What about the return filed by the NRI. Can he revise the same.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 February 2014 well that is already time-barred. he can seek some relief under section 119(2) by requesting relevant authorities to pass credit of excess tax (i am assuming he paid his own taxes and now when you pay additional TDS, it would result in overall excess tax for the relevant AY)

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