No Deduction of Tax at source

 U ACN SAY TO YOUR CUSTOMER NOT TO DEDUCT TDS AS WHEN THE CERTIFICATE IS ISSUED IT IS FOR THE WHOLE FINANCIAL YEAR AND THERE WILL BE NO VIOLATION. THERE IS NO SECTION NO. OF THAT.IF YOU GO AS PER SECTION 194-I, YOUR CUSTOMER WILL HAVE TO DEDUCT TDS IF THERE IS NO CERTIFICATE FOR LOWER OR NO DEDUCTION OF TAX PRESENT. BUT IT IS A CUSTMARY PRACTICE IF YOU HAVE APPLIED FOR SUCH CERTIFICATE.

IN CASE U RECEIVE A REJECTION FOR CERTIFICATE INTINMATE IT TO YOUR CUSTOMER TO DEDUCT TDS ON NEXT PAYMENT INCLUDING TDS WHICH OUGHT TO BE DEDUCTED EARLIER ALSO ALONG WITH THE REGULAR ONE.

HOPE I AM CLEAR TO YOU.

REGARDS,

RITESH KOTHARI

Mr. Ritesh Kothari,

Thanks for the reply.

Please let me know about the validity of the certificate. For ex: if the department issues the certificate on 18 August 09 stating that no TDS has to be deducted for the financial year 2009-10, does it apply for the whole of financial year or it stands good from 18 August 09, that is whether TDS has to be deducted for the payments made prior to 18 August 09.

With Regards,

Mukunda

 NO IT WILL BE APPLICABLE FROM 1/4/2009  AND VALID TILL 31/3/2010.