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TDS 260 views 2 replies

KAMAL SAKHRANI

partner

30 Points Joined August 2011

Dear Friends, Reacently received a Notice from Income tax for recovery of TDS for FY 2008-9 till date for Rs410325.80. On checking records from our challans and traces it appears that what we deducted from our Jobworkers, We are garment exporters, we paid/deducted Tds @ 2%.

But some of the Pan numbers now appear invalid and non exsistant. So obviously Traces has not been able to match such deductions. So they have calculated that TDS deductions should have been to the tune of 20% and not 2% as we deducted/paid. Plus they have charged interest on the difference .

It seems the jobworkers gave us wrong Pan nos and we did not verify the originals. They are no longer in touch with us so to recover money from them is not possible.

Please let me know how we can get out of this situation. Is there any appeal procedure or what can be done?

Kamal Sakhrani

PS: Out of about 15 false Pan card Nos I have just rcvd 5 to 6 correct Pan card Nos from jobworkers who are still continuing with us . If we rectify these can we get relief in such cases?

Replies (2)

ujjaishravan

accountant

212 Points Joined August 2011

Mr.KAMAL SAKHRANI
For invalid PAN, TDS will consume amount paid but not allot Tax credit.

if you're not at all able to get correct PAN, let the Invalid continues and make the following change

rectify amount as apperaing as "Amount Paid" in the returns to a amount matching with 20% of TDS deducted

Example:

existing

amount TDS Rate

10000 200 2%

10000 100 1%

now change the amount paid and Rate field to

Amount TDS Rate

1000 200 20%

500 100 20% as the case may be.

your default will get closed. When you get correct PAN that time you can easily restor to original value.

KAMAL SAKHRANI

partner

30 Points Joined August 2011

Thanks for the brilliant reply. But what is the worst that can happen if there is a scrutiny and they discover what i have done? is it above board? kamal.