Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2011 In assesment year 2008-9 tax return our CA and Audit Team both approved NO TDS against Bills provided by adertisement agances and Newspaper in which we give advertisements on regular bases. The total bill amounting to be 16,00,000.00 ( 16 lac).So no TDS was deducted from those bills and amount was paid to the advt agancies and newspapers.
In 2010 the assesment year 2008-9 was under scrutiny and assesing IO pinpointed the non deducted TDS thus disallowing all the bills amounting rs 16,00,000.00 and a demand notice of rs 9,60,900.00 was served .
Now the case is in Appeal CITA.and CITA is of openion that CA has not informend the client properly about the TDS law
My querry is that
' can client be held responsible for the advice given by his CA and audit team " as the client was only following the guidelines porovided by his CA and there was no direct or indirect moneytery benifit to client .

Now client has to deposit TDS for year 2008- 09 ,2009-10 and 2010-11 (under 194 c) ,which has added to his expence and also have to pay interest and panelty lavied by the IT depatment for year 2008-09 .

Is there any case similar to this in anyones knowledge ,which can help ?

What are the client's rights and can Client claim for his losses from his CA or Audit Team or any action can be taken ?

Nitin Lakhmani

Nitin Lakhmani (Expert)
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17 October 2011 As per IT act Assessee cant take any action against CA, but that kind of provisions are there in CA act 1949, so assessee can hold its CA for same with the help of strong evidence against him.

Asseess has to pay the demand of TDS of relevant year(s) with interest & penalty (if any imposed), there is no way out to avoid by blaming it on name of its CA.

If the TDS paid in this year relevant to past year then, that asseess can claim deduction of same expenditure's credit in year of payment of TDS, which is disallowed cause to no TDS.