TDS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 May 2011 Can TDS Deducted under section 194C or 194H in the month of april be adjusted agaianse the liability of May, if the original transaction in which TDS was deducted is Reversed in the month of may. The TDS for the month of April is already been Paid out to the Govt.

IF yes, please point me to the explicit provisions and section.

Guest

Guest (Expert)

19 May 2011 As Per the Provisions under Income tax Act, If the party has been credited or paid whichever being earlier the liablity to deduct the tax arises. so, legally it may not be possible

Querist : Anonymous

Querist : Anonymous (Querist)

19 May 2011 But what if we reverse the TDS entris also and adjsut the excess tds paid in the current month against the suceeding month's liability?

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Guest

Guest (Expert)

19 May 2011 there are possiblities..it can be adjusted in the suceeding month's liablity and while filing the return for the quarter ended deductee details for the said challans must be properly given....

Querist : Anonymous

Querist : Anonymous (Querist)

19 May 2011 Please link me to provisions where it is explicitely mentioned that such type of adjustment is possible.

Guest

Guest (Expert)

19 May 2011 There is no specific provisions for that........but it can be done as an alternative correction for the mistake made without overriding the provisions of the ACT