TDS u/s. 194J was not deducted earlier as the payments didnot exceed Rs.20000. Now due to a bill of Rs.700, payments made to the payee is exceeding Rs.20000/- and the amount of TDS to be deducted will be Rs.2100/- .
My problem is that how to deduct TDS of Rs.2100/- now from the bill of Rs.700/-. WHAT STEPS TO BE TAKEN AND ADJUSTMENTS IN ACCOUNTS TO BE MADE?
21 March 2009
I tell you from our Company's very recent experience. Our Company is rendereing Courier Service attracting TDS provisios of Sec 194C. One of our Customers (a reputed Public Ltd Co) has been booking Courier consignments always on cash basis. The moment total sum paid to our Company from Apr 08 onwards exceeded Rs 50000, the Company sent to us a Debit Note for TDS calculated on total amount paid to our Company from Apr 08 onwards. (I really appreciate their tracking system)
When our Company's officials brought matter to my notice, I advised to instruct our local Agant to (a) make payment immediately and collect Receipt and (b) collect Form 16-A before end of May 09. I advised to make payment immediately because we know legal provisions and we can treat TDS as Advance Tax paid by us.
If we refuse payment, we earn displeasure of our Client and may lose our business from the Company in due course.
Applying the same procedure, I would suggest you remit TDS to the Govt and collect the same from Professional. On receiving your amount only, issue Form 16A
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