14 December 2009
1.WE HAVE DEDUCTED TDS ON RENT EXCESSLY IN THE MONTH OF OCT-09 AND NOV-09
FOR SERVICES PROVIDED BY THE MACHENARIES
CAN WE ADUJUST THE EXCESS AMOUNT DEDUCTED IN THE COMING BILLS ?
2. IN OTHER CASE PARTY HAS GIVEN A LESS TDS DEDUCTION CERTIFICATE @ 2.6% ON TDS ON RENT, THE CERTIFICATE IS VALLID FROM 23.06.2009 TO 31.03.2010. BUT THE TDS RATE IS 2% FROM 01.10.2009, USE OF MACHINARIES. AT WHAT RATE TDS HAS TO BE MADE EITHER 2.6% OR 2% ?
14 December 2009
Point No.1 In this case as the TDS return for this quarter has not been submitted, you can adjust the amount for excess deduction towards the next months deduction.
Point No.2 Certificate of lower deduction means a concession from deduction of excess tax based on the past assessment of the deductee. However, if any amendment comes after the issue of such lower deduction certificate whereby the effective rate is even lower than the rate in the certificate, then tax should be deducted at the effective rate. In your case, it is 2% and not at 2.6%
CAclubindia
