Query regarding TDS
Hi,
I am working in X Ltd. as an A.M.: Account & Finance and facing a problem regarding TDS. The matter as under:
X Ltd. is a Value Added Service provider company to various telecom operators i.e. Vodafone, Idea, Airtel etc. and raise the invoices on revenue sharing basis.
The problem is, suppose X Ltd. raised the invoice of Rs. 1,00,000/- for per month for the F.Y. 2010-11 that means our gross income was Rs. 12,00,000/- for the F.Y. 2010-11. But operator had deducted the TDS on Rs. 10,00,000/- @ 10%. And TDS deducted on rest amount i.e. Rs. 2,00,000/- in F.Y. 2011-12.
And we have computed the total income for the A.Y. 2011-12 as under:
|
Taxable Income for the A.Y. 2011-12 is Rs. |
1,200,000 |
|
|
Tax on above income @ 30% Rs. |
360,000 |
|
|
Education Cess on above Tax @ 3% Rs. |
10,800 |
|
|
Total Tax Payable Rs. |
370,800 |
|
|
Less : TDS by Operator |
100,000 |
|
|
Less : Tax Paid u/s 140A |
270,800 |
370,800 |
|
Tax Payable / (Refundable) |
NIL |
|
Next year i.e. F.Y. 2011-12 we raised the invoice of Rs. 1,50,000/- per month i.e. the gross total income for the A.Y. 2012-13 was Rs. 18,00,000/- and the operator deducted the TDS on Rs. 16,50,000/- @ 10% i.e. 1,65,000/-. During the year 26AS shown total TDS Rs. 1,85,000/- (Rs. 165000 + 20000).
Now we have computed the total income for A.Y. 2012-13 as under:
|
Taxable Income for the A.Y. 201-13 is Rs. |
1,800,000 |
|
|
Tax on above income @ 30% Rs. |
540,000 |
|
|
Education Cess on above Tax @ 3% Rs. |
16,200 |
|
|
Total Tax Payable Rs. |
556,200 |
|
|
Less : TDS by Operator |
185,000 |
|
|
Less : Tax Paid u/s 140A |
371,200 |
556,200 |
|
Tax Payable / (Refundable) |
NIL |
|
In this year Assessing Officer has refused to give the TDS Credit of Rs. 20000/- with reason this amount is related to F.Y. 2010-11 (A.Y. 2011-12) and create the demand of Rs. 20,000/- with Interest.
My point as under :
- It is true, the TDS of Rs. 20,000/- is related to F.Y. 2010-11 i.e. A.Y.2011-12. But, if the operator deduct the TDS on whole amount i.e. 12,00,000/- @ 10% then TDS amount would be Rs. 1,20,000/- and we would have to pay the tax u/s 140A Rs. 2,50,800/- instead of Rs. 2,70,800/-.
- But, when operator is deduct the TDS in next F.Y. 2011-12 i.e. A.Y. 2012-13 and same has been deposited in Government Account with showing his expenses related to F.Y. 2011-12 i.e. A.Y. 2012-13, we have not any other option to except to avail the TDS credit which is reflecting in 26AS.
My question is:
- How the Assessing Officer can refuse the TDS Credit for Rs. 20000/- when Tax deduction was beyond our control?
- If any penalty imposed by or under any law, it should be on operator because he has not recorded the expenses in relevant F.Y. 2010-11.
I, request to you, kindly give the best suggestion with any case law so that we can apply for rectification of above said demand.
CAclubindia
