10 September 2012
Ours is Pvt Ltd Company has provided service of installation of machinery to party A (proprietary firm having turnover more than RS 60 lacs). Our company has charged some amount of Rs. 1 lac towards installation. While making the payment to us, the party has not deducted TDS. The auditors of A has pointed out and accordingly insisted to deduct the TDS by A. But there is no amount payable to our company. Also Balance sheet of our company is already finalised. What our company should take the action? whether the party has to bear the TDS as party has failed to deduct TDS. Please advise us.
10 September 2012
The action is to be taken by the PAYER. (Which he has failed to take) Now whatever has to be done , is required to be done in GOOD FAITH. I remember the cases where nationalised banks have not deducted the TDS from interest. In due course they requested their customers and many of them accepted the contention. (Legally, you are not at fault) You need to take the call depending the business relations with the party A
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