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please help in trouble........

yatish kotiyan (Articled Clerk) (372 Points)

25 September 2009

I have client wose has interent comission of Rs. 18 lakhs in fy 2007-08..

but didnt pay deduct any tds.The It was filed last year by a CA by Providing Rs. 7.5 lakhs as provision on liability. but the amount of tds amounts to around. Rs 2 lakhs.so the payment was around 5.5 lakhs in excess.

now can i adjust last years payment wid this years payment.coz he has come here just a few days back and due date is 30th sept,2009 for fy 2008-09.

also he allowed that 18 lakhs internet commision as an expense last year..

please reply...

this year tooo he has not deducted ne tds so should i have to make provisiopns this year also...

please reply as soon as poissible.........

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5 Replies

CA.Parsun Garg (JOB) (1380 Points)
Replied 25 September 2009

please provide the complete Details .
write clearly, wht is the problem & wht u wnt to do ?

yatish kotiyan (Articled Clerk) (372 Points)
Replied 25 September 2009

Originally posted by :CA.Parsun Garg
"	please provide the complete Details . write clearly, wht is the problem & wht u wnt to do ?	"

i want to file his IT return before 30 th Sept.

the problem is his tax u/s 194 H has been paid of Rs.7.5 lakhs without ne name by the CA for A Y 2008-09 where the TDS only amounts to around Rs.2.5 Lakhs.

now this yuear too he has not deducted tax nd his interent comission paid amount6s to around Rs.18 Lakhs. so can i file his tds in the last quarter and adjust this years tds amount with the excess of last year....

please rteply as soon as possible.plzzzz.

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 25 September 2009

Current year tax liability cannot be adjusted with previous year excess payment of TDS. U can claim refund of TDS of F.Y.2007-08 and if no return claimed in previous year return a revised return in this regard can be filed.

CA.Parsun Garg (JOB) (1380 Points)
Replied 25 September 2009

First of all u can not take set off with last yrs excess deposit, so file this year return by 30th sept. 09.

If the TDS has not been deducted & nor has not been paid the expense of internet commission will not be allowed against income.

But if u want to claim the expense then you have to deduct & pay the TDS with interest before 30th Sept. 09.

Important thing is that the TDS which you deduct & pay now should appear in the books as liability as of 31/03/09.

Second thing if Tax Audit is also applicable to ur client then this non-payment should come under section 43B & u hv to shw that the unpaid liability of TDS is paid before filing of return i.e. before 30/09/09 thru this you can claim the current year expenditure.

Now for Last year youc can file the revised return & claim ur excess payment as refund.

yatish kotiyan (Articled Clerk) (372 Points)
Replied 25 September 2009

Originally posted by :Ratan Deep Saxena
"	Current year tax liability cannot be adjusted with previous year excess payment of TDS. U can claim refund of TDS of F.Y.2007-08 and if no return claimed in previous year return a revised return in this regard can be filed.	"

But the paymentt for the TDS was made on 22/12/2008 for th Ay 2008-09.....