TDS DILEMMA....

TDS 638 views 2 replies

Fact:

A govt company which has been converted into a limited company (WHOLLY OWNED BY GOVT) and all its employees have been absorbed in the limited company. The govt. company had deducted TDS from employees opted for VRS but did not deposit the same with the I.T. Dept. Now after receiving Payment Orders from Income Tax Dept it has ASKED the limited company to deposit the TDS deducted and the same amount will be subsequently reimbursed by the govt company to the plc.

Both the govt co & limited company are separate entities HAVING SEPARATE PAN & TAN.

Query:

Can the plc receive the money as TDS deducted and submit the same to the I.T. Authorities against its TAN....??

Replies (2)

I think the answer is yes.

When the PLC is formed, it too over all the assets and liabilities of the earstwhile government company. The liability shall include the unpaid TDS as well.

The PLC shall deposit the tax under intimation to the Income-tax department.

But the TDS has been deducted after the formation of the plc (i.e. when both are separate entities)


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