Dear All,
My co. makes lot of payment to contractors, and have received various notices for past years, Mostly because of short deduction. Tax has been deducted short actually for the the Qtr based on the payment made in that Qtr. But on close scrutniy it was found in some cases tax has been deducted in excess in previous qtr (more than 2%) , so the party has been given credit of amt deducted in excess towards tax.
Is there any way for correcting this type of issue or we have to recover the short deduction of tax and no credit should be given for tax deducted in excess in previous qtr.
Let me explain by example
Month Amount Paid TDS (u/s 194C)
Apr'11 60000 1000.00
Aug'11 60000 1400.00 (1200.00 + 200 towards TDS deducted short in Apr'11)
Is there a way to corelate this in e-return and as ITD has raised demand notice for Qtr 1 for 200/- . Is there any other way to resolve this problem as the tax has been fuilly recovered from the vendor and has been deposited also with ITD. MAy pls guide
Kindly help plsss
CAclubindia
