Default u/s 201(1)/206C(7)

Dear Deepa,

        According to sec.201(1), a person shall be deemed to be an assessee in default in case he commits any of the following violations,

Sec 206(7) refers to collection of tax at source.. If the seller does not collect tax or does not remit the tax after collection, he shall be liable to pay interest

Sir,

My organization has received show cause notice u/s 201(1)/206C(7) of the Income Tax Act,1961 in the TDS/TCS statement filed by us for transactions in F.Y.2007-08. They mentioned about short deduction collection and amount deducted/collected but not paid.

Dear Deepa,

       As said in the above mentioned sections, there is a violation commited by ur organisation. SO ur organisaiton will end up paying interest. SO, u first send a reply to the SCN. Interest has to be paid for the default

our organistaion too received show cause notice u/s 201(1)/206c(7) for ry 2008-09 in which they showed

we deducted tds at lower rate under section 194c

as per their detailed sheet the calculation is as followe

amount of payment      amount deductible/collect.     amount deducted       short deduction

25000                            5150                                            572                             4578

75000                          10300                                           1120                          9180

according to their calulation the tds should be deducted @ 20.6%

So tell me if we are at fault or not?????

Dear Kundan singh,

In your case, Check your etds return whether you have quoted correct section in challan details. TDS rates for 194C should be between 1.03 to 2.266 for fy 2008-09. But in TDS returns you might have selected section 194A in challan details and have selected type of deductee as company. Revise the return if there is error

Dear Deepa

Short Deduction notice comes in the following situations

1. When wrong section has been put in challan details. For example deduction u.s 194c should be between 1.03 to 2.266 for fy 2007-08, if u have selected 194A  or 194J in challan details it should be 10.0 to 11.33 % so machine will take this as short deduction

2. Some times while deducting tds in each payment flat % as per provisions are not deducted. Instead some thing less or some thing more is deducted and this is adjusted against future payments in such a way that overall payment to the concerned party and overall tds in a financial year is as per the provisions of the act. In such a case machine will leave all payments where excess tds has been deducted and will pick up where less tds has been deducted and will issue short deduction notice for the same

FOr deducted/ collected but not paid

1. Check your challans whether they have been paid in right tan. Use oltas of tin.nsdl.com

2. check your challans for correct assessment year

3.check your challans for correct minor code CODE 200 should be there

4. Check your e tds returns whether you have incorporated correct cin, bsr code and challan amt

5. you can check quarterly statement status in tin website for challans which are either match pending or match failed and can track the errors

file appropriate revised return

If there are errors of the following nature, it can only be corrected at the AO screen

Remittance in wrong tan, wrong asst year, wrong minor code.

Originally posted by : S SRINIVASAN
	Dear Kundan singh, In your case, Check your etds return whether you have quoted correct section in challan details. TDS rates for 194C should be between 1.03 to 2.266 for fy 2008-09. But in TDS returns you might have selected section 194A in challan details and have selected type of deductee as company. Revise the return if there is error

how can i know whether i hve selected wrong section in return,,becoz i dont hve FVu file of the same,if there is any other way to see which section i was selected in my return..

Go to IT office of  TDS and collect the report on short Deduction / Collection from them on your Pen drive or CD

Originally posted by : Member (Account Deleted)
	our organistaion too received show cause notice u/s 201(1)/206c(7) for ry 2008-09 in which they showed   we deducted tds at lower rate under section 194c as per their detailed sheet the calculation is as followe amount of payment      amount deductible/collect.     amount deducted       short deduction 25000                            5150                                            572                             4578 75000                          10300                                           1120                          9180   according to their calulation the tds should be deducted @ 20.6% So tell me if we are at fault or not?????

We  received show cause notice u/s 201/(1)/206c(7)

Point 2 of notice is - in case the above defaults are due to error in data entry, the same should be corrected by filling a correction statement with TIN-FC .

Point 3. is if the defaults are otherwise than above, the amount of default my be paid within -- days of receipt of this intimation and not later than--- and a 'correcttin statemet' filled reporting such payment.

My question  is after payment of short deduction/ Intrest.is it require to submit correction statement?

Please suggest.

We  received show cause notice u/s 201/(1)/206c(7)

Point 2 of notice is - in case the above defaults are due to error in data entry, the same should be corrected by filling a correction statement with TIN-FC .

Point 3. is if the defaults are otherwise than above, the amount of default my be paid within -- days of receipt of this intimation and not later than--- and a 'correcttin statemet' filled reporting such payment.

My question  is after payment of short deduction/ Intrest.is it require to submit correction statement?

Please suggest.

if there is no short deduction & payment of TDS  & Quarterly Return filed by us is also correct & booked by the TIN-NSDL . Then whether  reply to the Notice u/s 201(1)/206C(7) is required?

IS THERE ANY TIME LIMIT UPTO WHICH AO CAN SEND NOTICE UNDER SECTION 201(1)?????