My service contract was for 3lakhs of web-designing. The designing work was to be done in 3 phases and the party was the release the amount in 3 installments.
I did phase-I, for which 1 lakh was due. But the client deducted, the tds amount on whole 3 lacs and paid me the balance out of 1 lakh.
Now later on client cancelled the contract. Inspite of repeated requisitions, client is not issuing me TDS certificate for the amount so deducted. I doubt that the client might have deposited the TDS amount to the govt revenue.
Can I claim TDS based on the invoice that I am having eventhough I am not having TDS certificate?
07 September 2009
No, you can't claim TDS based on invoice..
However, you can check whether the party has deposited the TDS amount to the Government or not in "tin-nsdl.com" site through your PAN no. And if the party has deposited TDS amount then you can claim TDS amount in your return, but it is insisted that you claim your TDS certificate from the party..
07 September 2009
You can consider the following provision of income Tax
As per the provisions of section 203 of the Income-tax Act, read with rule 31 of Income-tax Rules, every person deducting tax in accordance with the provisions of the Act shall, within a period of one month from the end of the month during which the tax was deducted, furnish to the person from whose income/payment the tax has been deducted, a certificate to the effect that tax has been deducted, specifying the amount so deducted, the rate at which the tax has been deducted and such other particulars as have been prescribed.
Consequences if Certificate is not issued:
failure to furnish certificate required by section 203 is a default which shall attract penalty under section 272A(2)(g) at the rate of Rs 100 per day during which default continues... however such penalty shall not exceed the amount of tax deducted at source.
07 September 2009
As Mr.Chandraprakash has rightly said, u can check the tax credit (form 26AS)through NSDL. If the deductor didnot remit the tax to government,u can claim TDS on the strength of your invoice/communication with the deductor/mode of receipt of amount from deductor etc, because tax recovery must be resorted to from the deductor and revenue cannot recover from the deductee from whose income tax has already been deducted.
Citation:- Yashpal Sahni Vs. ACIT (2007) 293 ITR 539 (Bom).
N.B:- This is a case on tds on salary income which will help in your case also.
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