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?
muralidhar (Excecutive Accounts) (62 Points)
14 June 2012One 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?
YOGESH
(STUDENT)
(128 Points)
Replied 25 June 2012
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)
Ritika Pundir
(CA)
(154 Points)
Replied 07 July 2012
Claim the tds in the return.
Why would the turnover become 1075,000/-?
I did not get you sir. Kindly explain.
CA.Saibaburao Nanduri
(Chartered Accountant)
(3847 Points)
Replied 08 July 2012
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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