TDS

One of foregin company charging the royalty payment from its subsidiary company in INdia. The Indian subsidiary company was deducting & deposting TDS as per appliable law. All the TDS returns were filed by Indian Company. At the end of the year , due to havey losses to indian company, both the company decided to reverse the royalty transaction. Indian subsidiary reversed the royalty payment in its book as on 31.03.2010. THe total royalty payment is Rs 100 lacs and Withholding / TDS Tax was Rs 10 lacs.

1. Whether the Indian Company should revise the TDS Returns FOR ALL FOUR QUARTERS .

2. Whether the forign company , filling the return regulary can file the return with NIL Income or gross income u/s 115A @ 10 %, as receipint of the services also reverese the entry and no expenses claimed in its books of account.

Originally posted by : Rahul Bansal
	One of foregin company charging the royalty payment from its subsidiary company in INdia. The Indian subsidiary company was deducting & deposting TDS as per appliable law. All the TDS returns were filed by Indian Company. At the end of the year , due to havey losses to indian company, both the company decided to reverse the royalty transaction. Indian subsidiary reversed the royalty payment in its book as on 31.03.2010. THe total royalty payment is Rs 100 lacs and Withholding / TDS Tax was Rs 10 lacs. 1. Whether the Indian Company should revise the TDS Returns FOR ALL FOUR QUARTERS . 2. Whether the forign company , filling the return regulary can file the return with NIL Income or gross income u/s 115A @ 10 %, as receipint of the services also reverese the entry and no expenses claimed in its books of account.

1. Yes TDS return need to be revised but the problem will be against who's PAN no. you will show the TDS deduction and deposition. As legally the adjustment which you told is not allowed.

Correct me if im wrong.