Friends
Ramesh perfromed a contractual repair job with Goodluck Ltd. In the invoice raised by Ramesh there was PAN quoted in printed form. The payer company deducted tax under 194C @ 1% and paid to CG . The quarterly TDS return was also filed.
Later on it was revealed that the PAN did not belong to Ramesh but it was some other person's say Suresh. The trick played ny ramesh was not to show the income at all -- then he would have been subjected to 10% or 20% income tax slab based on his individual annual income but to suffer a meagre 1% tax by way of TDS.
Now what is the liability of Goodluck Ltd, if any under Income Tax Act ? Ramesh does not have any other transaction with Goodluck in the FY
Regards,
CAclubindia
