Please refer the follwoing circular
CIRCULAR NO. 2/2011 [F.NO. 385/25/2010-IT(B)], DATED 27-4-2011
Circular states refund in case of excess payment or double payment of TDS.
Have u deposited total TDS amount deducted??
If u have deposited Total TDS deducted and there will be no penalty of excess deduction and payment of TDS.
If u have nly deducted excess amount and not deposited the whole amount, just refund the excess amount to concern person..
Yes, TDS amount already paid but now auditors has raised the queiry that i have deducted excess tds on rent amount and the same they have shown in queiry report.
Thanks and regards,
As you have already paid the amount, take base as tds amount paid and do reverse calculation. Take that amount as Value of service provided and make provision for difference amount in books and adjust that against next transaction with tht party..Also show accordingly in TDS return..
Dear Arun,
As you have deducted Tax on rent + S Tax and also deposited the same, you can issue Form 16A stating the actual amount deducted (even if excess) to the party. THere is no Non-compliance and no penalty leviable for excess TDS.
You have deposited excess amount in Govt's kitty. How can you even think that there is going to be a penalty for that.
Be rest assured, you have not done anything wrong.
CAclubindia
