14 January 2015
My Client is a Pvt Ltd Co.(say ABC Ltd).ABC Ltd has many clients on which it deducts TDS for commission offered to them. One of Clients has produced lower deduction certificate to ABC Ltd., and ABC Ltd has deducted TDS by that rate only., However Commission amt exceeded the amt specified in that certicate and ABC Ltd has continued to deduct tax at rate mentioned in Lower deduction certificate instead of Normal rate for the commission which has exceeded as per certificate.So dept has raised demand on ABC Ltd to the extent of short deduction. Pls advise. Kindly note that Client is not ready to pay ABC Ltd since it has already paid Income tax ( S.A Tax) to IT Dept.
CAclubindia
