20 December 2012
I am a partner of a Firm having 4 partners, running a franchise business .The income is coming in the name of one partner which is credited to the Firms current account . the franchiser is remitting TDS in the partner's name to whom they are paying commission. The firm files return and shows the TDS of partner in the firm's account. The firm got a demand notice from IT department stating that the firm has to pay tax and the partner has to claim TDS refund. As per partnership act the amount received in the name of any partner on behalf of the firm can be treated as firm's income, why the IT department is not allowing to set-off the TDS. They are telling the new software doesn't allow to set-off. What is the solution for this issue?????? WHY THE SOFTWARE IS MADE UNCOMPATIABLE WITH ACT?
24 December 2012
The department has already gave you the solution that partner may claim REFUND and Partnership should pay taxes.
Once the partnership deed has been signed it means a new entity has been created then making transactions in the name of one partner is a wrong. Please effect changes at your end. The partnership business and transactions be done on partnership name.
24 December 2012
we have been filing return for the past 10 years in the same method explained above. We have also claimed refund in the name of the firm and also received the same. This issue arise during the financial year 2010-11 citing some changes in the department's centralized software.
CAclubindia
