Tax deducted at source but not paid to the governmentt

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This query is : Resolved

Rahul (Querist)

28 July 2011 Dear Sir,
My Client is a consultant, He had raised a bill of Rs. 300000/- to one of his client.
His Client paid Rs. 270000/- after deducting TDS @ 10%. Now when the F.Y. 10-11 was over my client asked for a TDS Certificate from him, but he refused saying that the TDS deducted has not been deposited to the IT.Dept. i.e. he has neither paid the TDS of 30000/- to the Dept. nor has he filed his TDS Return.
I wanted to know what possible remedies are available for my client and the options that are available if he does not issue a TDS Certificate on time to enable me to furnish my Clients return of Income.

Hoping for a quick reply.

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)

28 July 2011 If he has not deposited that amount, then just get the amount back from him.

It is the responsibility of the deductor to deduct TDS and not of the deductee. So if he is clearly saying that he has not deposited the amount then just get back the amount from him and do not claim TDS.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

28 July 2011 Claim the TDS while filing the return of income. Naturally department will raise demand for want of an entry in form 26AS. Then,section 205 may certainly be pressed into service to bail out your client because section 205 seeks to protect the payees from the negligence of the payers.

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