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non deduction of tcs

CA. Rajat Tayal (Chartered Accountant) (64 Points)

23 September 2009

IF TCS IN NOT DEDUCTED ON SCRAP SALE THEN WHAT WILL BE CONSEQUENCES?

PLS TELL IT'S URGENT

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2 Replies

Juzer Sadikot (CA - innovative solutions for Imports and Exports) (1309 Points)
Replied 23 September 2009

Dear Mr. Rajat,

Penalty for failure to collect tax at source.

271CA. (1) If any person fails to collect the whole or any part of the tax as required by or under the provisions of Chapter XVII-BB, then, such person shall be liable to pay, by way of penalty, a sum equal to the amount of tax which such person failed to collect as aforesaid.

(2) Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner

Also it is advisable to pay TCS amount from your own pocket right nw and try to collect from the buyer in future.

Thanks