18 September 2008
We are a a proft making Company for the past several years, without any accumulated losses. Our core business is HR Consultancy from which TDS is deducted at the rate of 11.33 % and comes to around Rs.150 lakhs for the year 2007-08. However our tax liability is around Rs. 40 lakhs only . This situation is likely to continue for next couple of years, with the prospect of huge amounts likely to be locked up wit IT department while the Company starves for Working capital.
Is there any way that we can avoid this situation and get permission from IT department for a lower rate of TDS to be recovered. Can anyone suggest a way out.
CAclubindia
