double deduction of tds

410 views 6 replies
A makes payment to B (10000- TDS @ 10℅)=9000.
B then makes the payment to C (9000-10℅)=8100.
B was unaware that A had deducted TDS too.
Now C is at a loss due to double deduction.
What can be the best solution?
Replies (6)

What is the nature of tranaction? Professional fees?

yes, professional fees

As I understand the trasaction B's bill is for 10000/- so he gets Rs 9000 as a cheque/ cash and rs 1000/- goes to Tds which he can claim while filing return.

B pays assignment fees (?)  to C. Is C's bill is 9000? Then Rs 900 is deducted which he can claim later and 8100/- paid to him.

Where is the question of double deduction?

B was a mediary... A remits the amount to B and B makes payment to the party who provided the service

Assuming that such an arrangement was legal and if C cannot raise the bill directly to A,

C's loss is B's gain (Rs 1000 TDs).

Either C should collect it from him or let him have it for his efforts.

Assuming that such an arrangement was legal and if C cannot raise the bill directly to A,

C's loss is B's gain (Rs 1000 TDs).

Either C should collect it from him or let him have it for his efforts.

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