Wrong classification for TDS deduction, changeover

This query is : Resolved

nitin.surve (Querist)
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03 December 2008 Dear Friends,

We have in our company security guards on retainership basis with agreements of one year, renewed every year. They are raising monthly bills on the company on which company is deducting TDS @ 10% considering as professional service.

We also have separate security agency providing security personnel. This agency raises bill on the company on which TDS is deducted @ 2% on Contractors.

Can we change the TDS on bills raised by security guards from 10% to 2% now. If yes what is the process to be followed for change of TDS % from higher to lower rate. This must have happened just due to a error.

Thank you,
Nitin Surve

Rajdeep Pawar

Rajdeep Pawar (Expert)
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03 December 2008 Every deduction is separate deduction, Every case is unique in its respect. In present case you have wrongly deducted excess TDS, the problem might be there if TDS is deducted at a lesser rate, which is not in the present case. You can switch to deduct TDS under right section at any time.

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)
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03 December 2008 best would be while making 26-Q show these payments u/s. 194-C, although the tds would be more by 8% but there would be problem as you have deducted more tax

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