Hi Members,
Our company (Pvt. ltd. co.) is liable to deduct tax U/S 194J at the time of making payment to a Professional Consultant.
In the Q1 of FY 2016-17, a payment has been made on April'16 for Rs.50,000 (Gross Figure) and another payment has been made on June'16 for Rs.20,000 (Gross Figure). Tax has been deducted @ 10% ,i.e., Rs.5,000 and Rs.2,000 respectively, and deposited within time limit.
But at the time of depositing the tax, in the challan the section had been mentioned 194C instead of 194J.
The TDS return for Q1 has been filed by a 3rd party who filled TDS deducted figure correctly, i.e, Rs.5000 and Rs.2000, but to match the Gross amount paid with tax deducted as per Sec.194C (where tax is to be deducted @ 2%) he filled the total amount paid column as Rs.2,50,000 and Rs.1,00,000. The same figure is reflected in the Form-16A also.
Now, my query is how to rectify the above situation?
CAclubindia
