24 July 2013
A company has made payments to a contractor for capital WIP which is to be capitalised lateron on completion of work. The payments were made in F.Y. 2011-12 but the company forgot to make the provision of TDS? Now what is the remedy? Can the company make the provision of TDS now and deposit it ? Kindly guide?
24 July 2013
No. No need to deposit TDS. . What ever is forgotten it is not to be recalled. . The Late provision U/s 234E and interest U/s 201 will "adversely affect the profitability" , (though which was absent). It is better to take care of the contractor and get filed his return without fail. Company may pay fee for that if he still has not filed the return. .
25 July 2013
Thanks a lot Sir for the guidance. I still have a query. I totally agree with you that past is past. But wouldn't there be any query regarding non-deduction of TDS by the assessing officer or TDS officials (although it would not result in disallowance of any expenditure as it is a capital expenditure). Here I wish to mention that company had deducted TDS in FY 2012-13 on subsequent payments made. Contractor had also filed his return for AY 2012-13. Now is there any other way in which company can pay the TDS on earlier payments and the contractor also gets the credit of the same in 26AS?
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