One of our client entered into a contract for supplying of software and asked the customer to pay advance payment.The Client paid advance after deducting TDS @10% under sec 194J whereas there should not be any TDS or TDS @2% under sec 194C. Now when its time to receive final payment he let us to know about the deduction of TDS.
14 June 2013
For TDS deduction, on the contract signing itself need to intimate to client about your TDS applicability and also you have any justifications for the rates, that can be submitted to avoid the higher deduction. your side also can take to avoid the excess deduction.
What ever tds deducted by client you can adjust with your advance tax payment made by quarterly
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