Twice tds deduction

One of our customer twice booked our invoice and deducted TDS remitted to Govermenet. They will issue TDS certificate instead of payment. Can they do like that or it will become problem for future?

Replies (4)

Yes as the tax is deducted they cant pay back, but if they have not remitted to govt they can pay you the amount excess deducted.....

In case of Excess Deduction of TDS the Individual has to file The Income Tax Return & claim the TDS amount

While doing assessment Your turnover will be less by that invoice amount.

i.e. as per your P & L A/c your turnover is 10,00,000 of which say the invoice value to the above party is 75,000.

Now the ITO Adds the amount on which TDS is deducted will it (not) be 10,75,000.

(Assume that all the parties you have delat with during the have deducted TDS)

Claim the tds in the return.

 

Why would the turnover become 1075,000/-?

I did not get you sir. Kindly explain.

Dear Muralidhar !

The ‘deductor’ committed a mistake. This can be rectified by filing a ‘revised return’ which is permitted under the Income-tax Act.

If the deductor attempts to cover-up his mistake, by doing one more mistake it is nothing but a ‘Big Mistake’ and tantamount to fraud.

The ‘deductee’ is always safe because the ball is in the court of ‘deductor’, who should act wisely.

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