tds on tyre retreading

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

30 December 2009 My client - a partnership firm - runs a tyre retreading unit. One of the partners is having a bus unit in which all tyre retreading is being done by my client. The bus unit pays monthly by cheque to my client.

Now the bus unit has been advised todeduct TDS on tyre retreading sicne it is a contract.

For my clinet, there shall be too much of TDS and then will ahve to claim refund. Money will be blocked.

Does the bus unit have to deduct TDS. Any suggestions to plan this

REgarrds

Heera Nahariya

Heera Nahariya (Expert)
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30 December 2009 Application for TDS at lower rate or zero rate may be made to ITO in Form No. 13.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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30 December 2009 tds is there, but you can go for application to A.O with form 13 for nill or lower rate of deduction based on you income

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Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2009 the above query is for past 3 years. the expenditure on tyre retreadign incurred by the bus unit shall be disallowed during assessment proceedings leading to heavy demand. what can be done. for the next year, we can apply for non-deduction etc, but for the past 3 years, what is to be done

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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31 December 2009 If the bus unit not deduct the tds expenses will be disallowed