Non deduction of tds

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2018 Dear sir/madam

If no tax has been deducted since financial year 2016-17 and even if such expesnse was claimed as business expense in that year without deduction of tds and on this matter no query has been raised by auditor in the financial year 2016-17.But now in the financial year 2017-18 the auditors raised query for this matter.

Then in such case in the financial year 2017-18 it is mandatory to deduct and pay TDS for both year i.e financial year 2016-17 & 2017-18 or it is sufficient if we deduct and pay tax for the financial year 2017-18 only and ignore the tds of financial year 2016-17.

Thanks in advance................

Renu Goyal

Renu Goyal (Expert)
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22 January 2018 Deduct and pay TDS for the financial year 2017-2018.

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Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2018 But why we should not deduct tds for the financial year 2016-17 even if we have claimed expense for that year.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 January 2018 The person might have included that income, filed the return and paid the taxes. If not deduct the tax for that year.

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CA Suresh Jain

CA Suresh Jain (Expert)
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22 January 2018 What is the view of your auditors?

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Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2018 as per auditor view we have to make payment for tds of both year

CA Suresh Jain

CA Suresh Jain (Expert)
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23 January 2018 In my opinion the deduction now shall create complications.

Querist : Anonymous

Querist : Anonymous (Querist)

23 January 2018 how it can create complications. we have genuine reason for this.

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Anand

Anand (Expert)
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23 January 2018 Please see the reply from Mr Seetharaman. Most of the entities from whom you were supposed to have deducted TDS would have already filed their income tax returns since the due dates for this have passed.
You should contact them and ask them to provide you with the Form 26A which is a form that states that they have received income from you, they have included this income in their accounts and they have offered the same to tax. Once you receive this form you will not be considered an "Assessee in default" however, the interest for non-deduction of TDS from the date on which tax was supposed to be deducted till the date of filing of return by each of your deductees will have to be deposited by you. In case the deductee has not filed the income tax return, you should deduct the tax and pay it. Now you may face an issue for those vendors who were there last year but dont have any billing in the current year. But i think there wont be so many such cases.

This is the best way to go about resolving your non-compliance.

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Querist : Anonymous

Querist : Anonymous (Querist)

23 January 2018 Thanks....