Tds is adjustable/refundable or not?

CA Sahil Garg (Searching for Job) (171 Points)

26 November 2012  

Suppose ABC Co. paid an advance of Rs. 495000 to XYZ Co. for a contract on 30.04.2012 after deducting TDS of Rs. 5000. On 01.05.2012 ABC Co. paid that TDS to the Govt. But on 02.05.2012, the contract cancelled between both the parties & XYZ Co. returned the all money. So in this situation, can ABC Co. claim refund of TDS paid on that contract? Or TDS paid is adjustable against any other TDS liability?????