While making the Tds payment u/s 194C , we have only two options
Company Deductees & Non Company deductees
But in practice we pay single tds for 194C.
Do we need to segregate company & non company deductees while making Tds payments ?
Replies (13)
Quick Summary
Under Section 194C, TDS challan payment does not strictly require segregation between company and non-company deductees. A single challan can be used and adjusted across deductions within the same section, as long as TAN and return reporting are correct. However, some practitioners still prefer bifurcation for internal reconciliation.
You have to pay separately..But there won't be any issue from TDS CPC after filing tds returns even if there is no segregation of Tds payments under section 194C
Unless and until you make correct bifurcation individual parties will not get credit of amount deducted . At a later stage no tds certificate will be issued to the assesse to the deductor. The assesse cannot file his return to get credit of the same.
Unless and until you make correct bifurcation individual parties will not get credit of amount deducted . At a later stage no tds certificate will be issued to the assesse to the deductor. The assesse cannot file his return to get credit of the same.
Not at all.
When making the payment, you can select any section you want, it won't make a difference. The type of deducted also makes no difference. This has been the case for many years now.
We have been doing this in my company for years already. We pay a challan of a round figure and then use that balance across all types of TDS sections, deducted and quarters. When the balance is utilised, we make another random payment of a round figure. And so on.
For 194C adjustment is allowed within the section.Like 194C Non company deductees tax can be used for company deductees vice versa.But change in section need to check ..Can we use the 194C Tds for 194J using challan details ?
Absolutely you can. Since many years you can simply make the payment under any section and then use the balance for any section in the return. You can also use the same challan for 24Q 26Q 27Q across multiple quarters.
To avoid qualifications in audit report, you must pay tds under each section..If there is no practical issue then you may bifurcate the tds under 194C also.
I will repeat again, since 2014 it doesn't matter what section or deductee type your choose. So long the TAN is correct and you can see the amount available in TRACES, you can use it against any TDS deduction in your return.
These were relevant when TDS payments were made manually. But no longer make sense and are no longer relevant.
Your return needs to be correct in terms of the amount deducted depending on the section etc and of course there needs to be money available in the challan. But other than that, just think of it as a bank account and you can use the money as needed (so long as there is money in the account).
Here's one pdf from a third party that quotes the exact circular : https://www.voiceofca.in/siteadmin/document/CBDTCircularonSingleTDSChallan.pdf
Yes.You are right . Practically it may accept it..That may used in the rare events..
Generally we pay section wise payments monthly.
For few big clients we pay party wise payments also .
Few clients don't release the invoice unless we give supporting documents of tax paid under exact Section.Even they want to match the tds amount relating to their earlier invoice
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