Urgent - please clarify

TDS 601 views 3 replies

One of our client is a PARTNERSHIP FIRM. They are opting Sec 44AD Scheme. They have made somany payments during the year towards expenses for which TDS should have beeen deducted. 

Please clarify, WHETHER a Partnership Firm, which avails Sec 44AD benefits, NEED TO COMPLY WITH TDS PROVISIONS.

Plain reading of Sec 44AD does not state clearly about this. But if TDS provisions have not been complied and dsallowance arises, I HOPE no need to disallow any expenditure, because TDS disallowances section 40(a) is deemed to be complied. Please consider this and explain.

 

Replies (3)
Section 44AD is overruling Sections 28 to 43 C. Section 40a(ia) is also covered. So, no disasllowance of expenditure due to non compliance of TDS provisions. Still I would like to know why the firm is not following TDS provisions. Although there will not be any disallowance, still the not complying with TDS provisions may result in making him assessee in default. Further, in order to be safe from the impact of any retrospective amendments, my advice will be to follow the TDS Provisions.

I have submitted my TDS return and the acknowledgement slip states that 1 challan mismatched , this is  because challan has been deposited online one day before the date of  submitting the TDS return so the challan is not reflected till the date of sumittinng return and now this challan is reflected by tin nsdl challan verifying status  link.So, kindly suggest me that is there is any procedure to update the challan status or I have to revise my TDS Return. So, that it may reflect in the right account or I will wait for the depatement notice..

 

Dear Mr. Karan !

You have paid the challan. On the next day it was not appeared in the NSDL website. Usually it takes two to three days. The same thing happened in your case. Nothing to worry. You did it correctly. As there is no mistake, you need not file any ‘revised return’.


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