Tds

Best Way is to take them from writing that they would deposit that amount as TDs to credit of Cent Govt.  However inspite of taking i wiritng they might use that amt towards expense.

Best way would be not to pay them the amount & then you would be requried to pay tax on it.  Let them then face the I-T authorities.

It is business relation between company and your customer. It all depends on how u dealt with customers with regard to trust, ethics and principles.

As far as TDS on bill amount for which your customer omitted to deduct while paying the same is concerned, there is no obligaion on your part to pay back the TDS amount to honour the customer statutory obligation to deduct TDS and its remittance.

Option 1: General

(a) If it is one time transaction, no necessary to repay the TDS amount. (b) If there is regular billing  to your customer, same can be adjusted against next bill payment.

Option 2: For good relationship with customers

Let your customer the remit the TDS amount and same can be reimbused on producing the remittance challan.

@ Subhash

I think remittance challan can be used by them for other clients payments too until they file quarterly returns....

Actually we cant be harsh to the client as we need relation ship with him and at the same time we cant payback the money as we dont want to take the risk.we dont know weather we would have future transactions or not

Varalakshmi,

There is no restriction for TDS remittance should be done only for the consolidated amount . Even single remittance also possible.

Your customer can pay the TDS amount pertains to your bill payment seperately and same can be reimbursed.  

Ok fine 

Thank You.