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Remedy when party doesn't issue TDS certificate

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)

18 November 2008

Hi All,

We are Individual and not under tax bracket.

We are receiving activation claims from distributer since 6-7 quarter's after TDS deduction.

But there is no TDS certificate has been issued by the distributer till date.

Now we are discontinuing business with that party and want TDS certificate for all claims till date.

But party is refused to issue the same.

Please suggest the remedy.

It is very very urgent. If possible do mention the relevant Section.

Thnx.

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11 Replies

Shudhanshu Agrawal (Business) (2570 Points)
Replied 18 November 2008

Form No. 16A willbe issued to you and they have to issue it as per legal rules and u can ask them after the end of the quarter as TDS returns are filed quarterly........so dont worry they will issue it.

CA CHINTAN AJMERA (Chartered Accountant) (2987 Points)
Replied 18 November 2008

YES YOU CAN SEE UR TAX CREDIT THROUGH INTERNET AND IF PARTY PAID ON BEHALF OF YOU THEN ALL THE DETAILS ARE AVAILABLE THERE.

Piyush Jain (CA) (283 Points)
Replied 19 November 2008

TDS is basically advance tax payment paid by the party on our behalf to the government.. If he is not giving us the TDS certificate it is equal to not providing us complete consideration.

So you can ask the party to either provide the certificate or the balance payment.

Regards

Piyush

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)
Replied 19 November 2008

Thnx for your responses......

What if party is not agree to do both(nither he is issuing cettificate nor he is refunding the money) ??? Can i file a return with refund claim?? if yes than what should i write in TDS certificate no. etc. ???

Can we have one impression that party has not deposited our TDS amount into goverment's account so it doesnt have TDS certificate and therefore refusing us.

CA CHINTAN AJMERA (Chartered Accountant) (2987 Points)
Replied 19 November 2008

YES YOU CAN SEE UR TAX CREDIT THROUGH INTERNET AND IF PARTY PAID ON BEHALF OF YOU THEN ALL THE DETAILS ARE AVAILABLE THERE. AND YOU CAN FILE RETURN WITH REFUND CLAIM

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)
Replied 19 November 2008

and what should i write in TDS certificate no. etc. ???

Shudhanshu Agrawal (Business) (2570 Points)
Replied 19 November 2008

I think ur second thought might be true. There can be two cases:

1. Either they havent deposited TDS.

2. They havent deposited TDS return.

That can be a reason or maybe some problem with PAN No. but we cannt go on guesses.

CA Pramod Singhal (CHARTERED ACCOUNTANTS) (68 Points)
Replied 28 November 2008

Originally posted by :CA Prakash Somani
"	and what should i write in TDS certificate no. etc. ???	"

Dear Somani,

Never think more, simply you has to give one letter to party about your tds claim and keep the copy of receipt of letter .

Further you may file your i.t. return without attaching the copy of tds certif.. and take the benefit of tds.

If the parties not deposit the tds in time then this is not your liability, department ask the question from party.

You feel relax and file ur it return within time with claim of tds.

Thanks & Regards

Tejal S More (Article Assistant) (22 Points)
Replied 30 August 2010

if the company providing consultancy services , considered fees in the year of providing services & the tds on the same is not considered in the year of providing services as the deductor deduct the same in the year of receipt, then whether the assessee company is entitled 2 claim the tds in the year subsequent of taking credit of income?

PRANAY JAIN (Director) (248 Points)
Replied 03 September 2010

I have a query as well, i have not received tds certificate worth Rs.105, from deductee, and same is also not reflecting in nsdl website, so can i file the income tax return without claiming this tds

YATISH GUPTA (practice) (177 Points)
Replied 24 July 2012

Section 203 of the Income-tax Act - Tax deduction at source - Certificate for tax deduced - Issue of TDS Certificate in cases of Truck/Goods-carriage Operators

Circular No. 6/2006, Dated 23-6-2006

1. As per the provisions of section 203 of the Income-tax Act, read with rule 31 of Income-tax Rules, every person deducting tax in accordance with the provisions of the Act shall, within a period of one month from the end of the month during which the tax was deducted, furnish to the person from whose income/payment the tax has been deducted, a certificate to the effect that tax has been deducted, specifying the amount so deducted, the rate at which the tax has been deducted and such other particulars as have been prescribed.

2. However, representations have been received that in the case of the road transporters, where tax is deducted under section 194C from the payment being made to the truck-operator on delivery of the goods by the consignee, the certificate is either not being issued by the consignee within the prescribed time or the certificate is being issued in favour of the consignor of the goods at the place of the truck-operator. As a result of such irregularities, the truck-operator is not able to claim credit for the tax deducted from the payments received by him.

3. In consideration of the above and the trade-practice prevailing in the road-transport industry, where the truck or such other goods carriages is booked by the consignor but the payment is made by the consignee on delivery of the goods, the Board hereby reiterates the previsions of section 203, as mentioned above, and advises the consignee to issue TDS certificate in the cases of the truck/goods-carriage operators within the prescribed time and in favour of such truck/goods-carriage operators.

4. It may be clarified in this regard that in case of any failure in timely issue of certificate or in case of issue of certificate in favour of any person other than the person from whose payment tax has been deducted at source, the provisions of section 272A(2)(g) shall be attracted, under which, penalty of one hundred rupees for every day during which the failure continues is leviable.