Tds query

TDS 596 views 4 replies

Hemant

33 Points Joined March 2013

The company was required to make payment of tax on distributed profits of domestic companies of Rs 1,24,122/- and RS 1,24,088/- and accordingly deposited the DD tax of above mentioned amount on 27.12.2007 and 17.3.2008 in bank..

HOwever due to mistake . the above mentioned dividend on disbursed tax were unanimously deposited on challan no.281 of TDS Payments Challan mentioning the said payments towards the tds on DIvidend Payments (code 194)

The assesse was not required to make any payments towards Tax deducted at source as the assesse company has not decuted tax at source .

The said tax was required to be deposited in Challan No 280 towards the payment of dividend of income tax.

what shall be done now ??

Further the company has to quote PAN NO. INstead OF TAN NO.

can the payment be transfered from TAN to the said provision of section 115(o). ?

further The mistake was made by bank Which wrongfully submitted the above mentioned payment of 1,24,088 towards someone's else TAN no. .. Now how to transfer the said amount FIRSTLY to OUR TAN account .. AND FROM THERE towards the payment of tax u/s 115(O).

Thanks in advance

Replies (4)

abc

Student CA Final

132 Points Joined December 2012

mention PAN and pay tax for dividend again in NEW CHALLAN seperately as same cannot be adjusted against amount paid in Challan 281.

The amount paid in 281 can be claimed against other tds liability in future.

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if tan was wrongly quoted then ask the bank to rectify the same. in 7 days

if rectification is not possible then appeal to the jurisdictional AO of TDS Ward of the person whose tan was mentioned wrongly. if u dont know who it is... then consult the AO of TDS Ward of ur range.

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TDS Cannot be adjusted against Dividend tax

Hemant

33 Points Joined March 2013

Thanks For reply

As such Company dont have any Liability towards tds.

. whether we should go for refund of tds ?

As I have consulted With TDS Officer Of my wards he also said currently there is no provision . bt it might be there in coming few days

Thanks again

abc

Student CA Final

132 Points Joined December 2012

it is not so easy to bring out such rules for adjustments as the AO might have replied. Otherwise every one will start adjusting TDS against dividend. It will be a loss to the govt. If TDS was wrongly claimed then where will the govt. go to adjust TDS? So ignore the reply as of now from AO..there will be no rule like that according to me... because there will be a mess if such rule comes out.. just get the TDS amt reverted to your account properly. If company doesnt have liability towards TDS now then it can be adjusted in future. Without liability there should not be a TAN no. obtained by company. so company always has TDS liabilities like Salary interest etc.. TDS cannot be refunded in cash without assessments. So you may adjust against Future liability which is the best possible and easiest way.