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Very urgent plz reply plz

srinivass (CA Final) (2466 Points)

02 September 2011

Hi ,

Mr.X doing iron ore sale business....the supplying of iron ore through lorries is also carrying by the Mr.X...

1. he Hire the lorries which are using for Supplying but he did not deduct TDS........

this case is for FY 2008-09

Now he recieve one notice from DEPT.. for non deduction of TDS ...

so, please suggest me what are the further consequences.......what Mr.X to do for replying the notice.

plz repla asap...........very needed......thanx in advance for ur valuable sugggestions

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4 Replies

Shah Tarun (Student) (800 Points)
Replied 02 September 2011

Hi. .Plz refer sec 201 for this. . Mr. X have to deduct and deposit tax now with interest @ 1% pm,penalty may be waived . .

Sachin (Chartered Accountant) (419 Points)
Replied 03 September 2011

Dear Srinivas,

This is incomplete information. What is the notice issued by the Department. which types of Invoice raised by the department in this respect. my emil id is sachinagarwalcallb @ gmail.com

Thanks

Sachin Agarwal

praveen (Chartered Accountant) (6971 Points)
Replied 05 September 2011

One cannot do business with himself. So he cannot deduct tax on himself. You please write a letter to the NSDL / Income Tax stating that both the assessees are same and if you have paid sufficient income tax (Advance tax, SAT etc) please also send the computation of income and income tax returns.

It should not be a problem if the assessee has discharged his tax liability with interest applicable

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venkatesh (chartered accountant) (32 Points)
Replied 05 September 2011

since Mr.X has hired the lorries for carrying the iron ore, it seems he treated the lorry business as a separate concern from iron ore business. Hence, TDS should be deducted.