Very urgent-tds query

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2013 Dear Experts,

M/s ABC network, advertising agency has raised invoice for Rs. 58k (inclusing service tax)to our client on 15.05.2013.

But our client is failed to deduct the TDS on the same amount and already made full payment to the agency.

What to do next???
Can we deposit the TDS from our pocket alongwith penal interest???

Please advise me in details....Thanks

Ganeshbabu K

Ganeshbabu K (Expert)
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23 August 2013 1)can pay tds from your pocket and debit the part account for the same amount so that it can be recovered in subsequent bill
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if there is no other transaction with party you request to pay that amount on providing tds certificate to party

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Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2013 Thnx a ton Sir!

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2013 Dear experts

Another query for TDS....

ABC an advertisement agency has raised invoice for Rs. 58k (including service tax) for the period of 02.05.13 to 31.05.13 for TV scrolling ad.....but they failed to provide the services and accordinglt our client paid Rs. 38k to them.....Now, question arises is that whether we should reverse the 20k in our books???

And should dedcut/deposit the TDS only on 38k???

Please advise!

Ganeshbabu K

Ganeshbabu K (Expert)
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23 August 2013 if you reversed the tds amount you need to revise the tds return also if required
..
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if both pertains to a particular quarter you can do tds only on 38k
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but party may not object ecause what ever you deducted you will provide tds certificates

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2013 Few points are:

1) Bill was raised for 58k.
2) our client pays Rs. 38k
3) Rest 20k is reversed in his books (as services provided only for 38k by the agency)
4) Our client is failed to deduct/deposit TDS on 38k.
5) Now, he wants to deposit from his own pocket.

Now is there any problem with that as invoice was raised for 58k by the agency?

Pl throw some light on this.

Ganeshbabu K

Ganeshbabu K (Expert)
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24 August 2013 1)No because credit for the Rs.20K was not given to party..it may becomes indirect income or reduces indirect exence

2)you may pass debit note for the 20K

3)so it will be okay to pay tds on 38K and debit the party for tds amount,,and this debit balance of company will be closed with amount collected from party

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