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Short deduction

vamsi netha (Sr Accountant) (57 Points)

11 December 2013

Hi,

One of our vendor sent us a low deduction of TDS certificate according to it the limit was 350k. where as we have paid him 360k. now we have got notice from the IT dept asking us to pay the difference of tax on 10k (2%-0.56%). we have no business transactions with this vendor. If we pay the difference of the tax and file revised return this vendor gets form 16A for that amount. Is he under obligation to pay the difference of the amount to us?

Thanks,

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(Guest)

It was your responsibility to deduct tax @ 2% on Rs 10000/- but you deducted 0.56%..now you should pay the balance. Whether the supplier will repay it to you depends on the relations with your company.

Fortunately the difference 2%-.056%=1.44%

1.44% on Rs 10000/- is just Rs144/-..why don't you pay it?

1 Like

Suresh Kumar ( ) (60 Points)
Replied 12 December 2013

Originally posted by : Madhavi
	It was your responsibility to deduct tax @ 2% on Rs 10000/- but you deducted 0.56%..now you should pay the balance. Whether the supplier will repay it to you depends on the relations with your company. Fortunately the difference 2%-.056%=1.44% 1.44% on Rs 10000/- is just Rs144/-..why don't you pay it?

Exactly....

2 Like

CA Vanamala Phani Kumar (Proprietor of M/s Vanamala and Co) (972 Points)
Replied 12 December 2013

Originally posted by : vamsi netha
	Hi, One of our vendor sent us a low deduction of TDS certificate according to it the limit was 350k. where as we have paid him 360k. now we have got notice from the IT dept asking us to pay the difference of tax on 10k (2%-0.56%). we have no business transactions with this vendor. If we pay the difference of the tax and file revised return this vendor gets form 16A for that amount. Is he under obligation to pay the difference of the amount to us? Thanks, VN