08 April 2012
Dear Sir, I have done Rs. 5 lakh business(sales + service)with a govt. organization in 2008-09. Now this april 2012 they are asking 2% Tax for that amount. Is it fair?
09 April 2012
Mr. Jagannath, If the assessment for that assessment year is not yet completed then department still has right to issue a notice to you asking for TDS on such transaction(If applicable). It may further charge interest and levy penalty for non deduction of TDS.
09 April 2012
No doubt the Government department cannot deduct TDS now but it is a well known fact that Government accounts are audited after about 5-6 years in many cases and the auditor might have noticed that no TDS was deducted from you during 2008 so the company is pressing you for deduction now. Just meet the officer and tell them that your assessment for 2008-09 is already over and how this deduction will be adjusted by the IT department. Let them deduct the same and let then mention the assessment year of the current year and let them issue a letter stating that it related to 2008-09 and you claim during the year
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