Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 January 2013 If company deduct tds at normal rate of a person who dont have PAN no. but to avoid non compliance gives credit of tds deducted to some other vendor ?? then what are the consequences pls give reference to some section

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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18 January 2013 its just against law and is illegal pls dnt involve in such activities.

Querist : Anonymous

Querist : Anonymous (Querist)

18 January 2013 Can u please tell me some section reference

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CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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18 January 2013 Firstly

the income tax will invoke the section 201 for the TDS credit taken by another company

1) Where any person, including the principal officer of a company,—

(a) who is required to deduct any sum in accordance with the provisions of this Act; or

(b) referred to in sub-section (1A) of section 192, being an employer,

does not deduct, or does not pay, or after so deducting fails to pay, the whole or any part of the tax, as required by or under this Act, then, such person, shall, without prejudice to any other consequences which he may incur, be deemed to be an assessee in default in respect of such tax:

and

Provided that no penalty shall be charged under section 221 from such person, unless the Assessing Officer is satisfied that such person, without good and sufficient reasons, has failed to deduct and pay such tax.

and (1A) Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct the whole or any part of the tax or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest,—

(i) at one per cent for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted; and

(ii) at one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid,

and such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200

and

276B. If a person fails to pay to the credit of the Central Government,—

(a) the tax deducted at source by him as required by or under the provisions of Chapter XVII-B; or

(b) the tax payable by him, as required by or under—

(i) sub-section (2) of section 115-O; or

(ii) the second proviso to section 194B,

he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.