09 May 2011
WRONG Deduction of TDS under 194 C instead of 194 J
Fact of the question:- Company is involved in the business of EPC in the select areas of operations. During the Current year Company has made certain deduction of TDS and deposited the same with the authorities regularly without fail. In view of the company the above said deduction were covered under Section 194C and accordingly the TDS were deducted at the applicable Rate of 2% and the same was applied and all formalities were completed as such well within the prescribed time limits.
The Statutory Auditors while conducting the Audit for the year during April 11 were having a different view on the said transactions and they were of the view that these transactions are subject to the provision of Section 194 J and should have been dealt accordingly.
In view of the certain restricted time frame for merger of the accounts with the parent company, this company has agreed to the point of view and accordingly changed their stand and incorporated the same in Financial Accounts of 2010-11 and deducted the differential amounts of TDS @ 8% and deposited the same along with applicable interest thereon during April 2011.
NOW company is facing a peculiar situation by agreeing to the Auditors point of view with respect to filing of TDS return electronically by stating the facts of the case. QUERRY: Company is interested in knowing the methodology of: a) How to undo the earlier returns, Challans and payments made under Section 194 C. to enable the company to file the correct and materially factual return under Section 194J. b) If this is not possible then whether the company can show the balance differential amount under section 194 J by altering the Gross Value of Invoice and submitting the factual information to the Department in hard copy explaining the case. c) What will be the fate of TDS certificates already issued by the company on Quarterly Basis and how the TDS Certificates for the differential amounts/Total amount are issued.
Request that Suggestions/advises on the subject may please also be forwarded to ghuliani@gmail.com.
10 May 2011
You can not udo earlier retun, challan & payment. First file the revised return for that period taking full amount of tds deducted u/s 194C & u/s 194J in revised return.
CAclubindia
