Please advice - tds

In first case: You have to demand only net amout...You can adjust deposited amount to another party, next quarter.

in second case: You can demand total amount (paid amount + tds)

Case -1: If TDS return has not been filed:

A. You can ask him the refund of net amount only. The TDS deducted on his account can be adjusted and reported towards the TDS deducted by other deductee from whom who have regular dealings.

Case-2: If TDS return has been filed: In this case you will have to file the revised TDS return. There will be two scenarios:

Scenario A: If you are able to adjust the TDS deducted from him towards the TDS deducted by other deductee from whom who have regular dealings. For this purpose, you may have to show that advance has been paid/credited to the vendor. Then you shall ask him for the refund of net amount only.

Scenario B: Here you will have to revise the TDS return by only reporting the TDS deducted from him and will have to report nil in the amount paid/credited column. If any income is reported in the TDS return then the same will be reflected in Form 26AS of teh deductee which is not the factual position. Thereby you can ask him the refund of full amount because the TDS which was deducted from him earlier can be taken back by the deductee by way of refund in his ITR.

In case of First scenario:

But if the advance payment is made in january'13 and TDS has been paid and this amount is much higher than the amount of TDS to be paid for march'13 therefore, in that case is it possible to carry forword to next yr?  as the TDS is paid assessment year wise and Section wise . We don't have any other deductee with whom we have regular dealings or with the same section

Yes you can adjust this amount to next year but you have to correct the deposited challan.. Because financial year and Assessment year will be changed.