13 December 2011
Gujrat high court in case of CIT v. Om prakash gattani has gave the ruling that it deducter defaluts in submitting tds deduted same can not be collected from the payee. hence the department should take action against the school.
MY QUESTION IS THAT THE DEFAULTER SCHOOL IS MY CLIENT SO WHAT SHOULD WE DO ???
SHOULD SCHOOL PAY THE TAX DEDUCTED FOR F.Y.07/08 & 08/09 ???? BECAUSE EVEN IF SCHOOL PAYS THAT THEN ALSO TEACHERS ARE NOT GOING TO GET CREDIT OF IT....
MY MAIN QUESTION IS THAT WHAT SCHOOL SHOULD DO NOW ????
14 December 2011
The school is liable for penalty u/s 271 and interest, it can deposit the tds deducted and the teachers will get the credit after approval of ito, but it is a very cumbersome process. instead school can return the tds amt to the teachers who will use this amt to pay there tax dues, and school can pay the penalty and the interest amt. if school is very lucky then it may have not received any notice from the tds circle.
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