Tds on loan
srinivas (accountant) (60 Points)
17 March 2016
CA Chandra Prakash
(9873059766 Increasing knowledge through sharing)
(296 Points)
Replied 17 March 2016
Ask the reason from bajaj finserve, why are they not allowing you to deduct the tds. Your CA is correct and alternate procedure is very lengthy. u can read alternate solution here https://www.hdtmc.in/?p=8 .
srinivas
(accountant)
(60 Points)
Replied 17 March 2016
Dear Sir
Thank you for your valuble suggestion
Regards
Srinivas
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)
(1372 Points)
Replied 17 March 2016
First of all you have to confirm whether Bajaj Finserve is a Banking Company as per Banking Regulation act, 1949.(Furthur, I have searched in MCA website about Bajaj Finserve and it is a Public Ltd Company which may be under category of NBFC. So in my opinion,it is not a Banking Company registered under BANKING REGULATION ACT,1949 unless some Grouping of Companies may involve which lead to Complexity, So please confirm this matter on your own). If it is a Banking Company then no need to deduct T.D.S u/s.194A other wise deduct T.D.S @ 10%. Generally if Payee applies for Nil deduction to A.O u/s.197 then A.O will issue certificate directly to you which is valid Payee wise and for Period prescribed there in. So as Chander said, contact Bajaj Finserve and Cofirm the reason for their assertion.
shantanu
(a)
(38 Points)
Replied 17 March 2016
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)
(1372 Points)
Replied 17 March 2016
Actually it leads to unnecessary flow of Working Capital from Deductor Point of View i.e Rs.1Lakh to Creditor on payment date and Rs.2 Thousand to Department by 7th of Next month and Rs.2 Thousand inflow after relevant Quarter inspite of fact that Net receipt for Payee remain same i.e 98,000.(Rs.1Lakh on Paid date and Rs.2 Thousand outflow on submission of Form 16A but not Form 16). If deductor follows regular method then it leads to Outflow of Rs.98,000 on payment date and Rs.2 Thousand to Department by 7th of Next month. So unnecessary flow of Rs.2 Thousand on Payment date and wait till submission of Quarterly Returns for the receipt of the same even with out Interest would be avoided if regular method followed.
shantanu
(a)
(38 Points)
Replied 18 March 2016
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