01 October 2008
what is the consequenses if we deduct the tax at source in the year 2006-07 and failed to remit duely and failed to inform the parties as progressive payments were made. parties concerned were filed the returns for FY 2006-07 on due date. now the question is what will be the consequences if we remit the tax deducted with interest with gov? and what is the consequenses if we return the money and revise our income tax return and what is the correct course of action for the moment
the parties concered were not considered as TDS and the information is passed only on last payment made during the FY 2008-2009
we are a private limited company liable to tax audit
TDS is collected for the contracts which has the capital in nature
02 October 2008
If you are liable for Tax Audit, then One impact must be that your expenses on which you have deducted tax but failed to deposit the same with deptt. must have been disallowed in your Profit & Loss account and taxed considering your deemed income. If the other party on behalf of which you have deducted tax has claimed TDS in its IT Return, then demand shall not be raised against that party rather it shall be raised against your company who is in default.
02 October 2008
1. Non-deduction will invite interest/penal provisions. 2. The correct way will be to remit the tax due. The party will claim it in the year you have paid.
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