29 December 2013
Dear Sir, We have paid TDS for 2011-12 in 2013-14 due to unawareness. Amt of TDS is 53000/- paid as per our tax consultant said. Can you please tell me penalties for it. and is it required to pay Income tax on that bills of 2011-12? The amount of labour bill is 32 lacs. And as per consultant we have to pay 10.56 lacs. and this amt is too big for us. Please guide us
29 December 2013
You dont have to pay penalty unless it is demanded. Also you will be required to file E-TDS return if not filed & revise the same if it is filed.
29 December 2013
I would advise that you hire a different consultant to do the correct computation, pay the interest due and revise the return. No point in waiting for income tax department's notice.
29 December 2013
Thank you Nikhil Sir and vaibhav sir, Due to late TDS payment our labour charge bills of 32 lacs are disallowed and are reflected in balance sheet as profit as per tax consultant. They said 10.56 lacs will be the Income tax we have to pay now. allready we have paid 90 thousand as per profit. Please tell me is there any way to avoid this extra Income tax payable.
Well in such a case a demand will be raised for AY 2012-13. However, you can claim the said expense in AY 2014-15. So net-net, you won't be in too much loss except for the interest portions.
is there a way to reduce the liability for AY 2012-13, NO.
However, on cash basis, it won't affect you much as your tax liability for the current year will fall by the same amount.
CAclubindia
