Income tax

Others 262 views 4 replies

sundaram

finance manager

42 Points Posted on 26 November 2019

Hi members....

Guide me in following situation...

We are agency principal with a company based in Mumbai.

All our expenses are reimbursable on actual.

And we allowed to charge Fixed agency fee for every month.

We raising tax invoice with GST @ 18% for agency fee.And separate debit note for reimbursement of

actual expenses with clear statement of bills.

Our client wrongly deducted TDS @ 2% on our expenses bills during the period sept 18 to nov 18.

and after we pointed out , they stopped the TDS in expenses bills.

while filing ITR of FY.2018-19, we declared only our agency fee

But our 26AS is not matching because of wrong deduction of TDS on expenses reimbursement.

what we suppose to do when this discrepancies is pointed out by department.

Replies (4)

Guest

I think your agency fees is always less then actual expense amount. So your client can revise his TDS return by amount off your agency charges but TDS Amount remain same as previously. Step for correction :- Delete Previously entered Transaction, Then again enter transaction in same date, against same chalan, but enter bill amount as your agency fees amount. Thus bill amount less in compare of previous amount entered and as per rate of section TDS is more deducted and deposited. Thus your 26AS will match with your data. TDS will remain as it is.

Kapadia Pravin

17264 Points Posted on 26 November 2019

Actually there is a lapse on your part. When you raised TDS issue with Principal , you should have demanded refund of excess TDS or ask for change in figures in TDS certificate.

Now remedy lies with Principal to correct TDS return so as to correct 26AS statement.

Guest

suppose Expense bill is 1000 then TDS @ 2% is 20/-, This is previous transaction in above case. Now change the bill amount as service bill amount = 100/- and TDS will remain 20/- as its ( instead off 100/- @ 2% = 2/-) Thus your 26 AS will correct from bill side ( service bill amount is you income which declared.

After revise TDS return by Client with above correction, client may download new fresh TDS Certy with correction and issue it. and also reflect it in your 26 AS.