Non deduction of tds

This query is : Resolved

Rahul Prasad (Querist)
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27 December 2014 Dear Sir,
One of my client din't deducted TDS.
Bill has been raised on april 2014 and full payment has been made in may 2014 without deducting TDS. on the 1st quarter of 2014 there is no any return file by them.

What can be best solution. and what will be penalties??

PRADEEP KUMAR VATS

PRADEEP KUMAR VATS (Expert)
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27 December 2014 Dear Rahul

In such type of situation where client didn't deduct tds and made the payment fully, he will take the following two aspects:

1) make the entry in his books and deposit the same with interest (sec-201(1A)).
Party dr xxx
To Tds payable xxx

2) secondly, if the party is regular (like every month client will get the bill) then adjust the tds amount with next bill by making lesser payment i.e., after reduction of tds amount.

Regards
Pradeep Kumar

Rahul Prasad

Rahul Prasad (Querist)
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27 December 2014 Deductee is ready to adjust the TDS amount in current. say tds of 1st quarter is adjusting in quarter 4. then for which quarter that return will file.??

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CA Parul Saxena

CA Parul Saxena (Expert)
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27 December 2014 return will be filed for 4th quarter

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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27 December 2014 Dear Mr. Parul I like to open this query once again. Under section 234E and section 271H mandatory hash penalties are there in case of non filling of TDS return.

As per Section 234E Rs. 200/- Required to be per days till the default continue subject to maximum of TDS in that return.

As per section 271H mandatory penalty of Rs. 10,000-1,00,000 is levied in case of non filling of TDS return. but this penalty can be avoided if return is filled within one year from its due date and fees under section 234E has been paid.

Therefore, it is suggested to file your TDS return for 1st Qtr now along with fees under section 234E