Tds credit

This query is : Resolved

ANITA M. PANCHAL (Querist)
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01 November 2011 one partnership firm converted into pvt.ltd. company. During the year, credit of TDS goes to both entities.
If company wants to take credit of TDS in firm, then can TDS be transferred to company and claimed in company's return?
what will be the procedure?

CA Neha Jain

CA Neha Jain (Expert)
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01 November 2011 I don't think the TDS of one legal entity will be available to the other entity.

If tax liability is less than the tax paid, difference amount will be refunded to the firm (or to legal representative in case the firm is disolved).

Please re-check with any tax expert.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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01 November 2011 In the given case two separate balance sheet will be prepared and two Income tax returns will be filed. 1 by partnership firm and 1 by company for the respective period of year.

Say firm converted into company is jan.

So balance sheet of 9 months business will be prepared by firm and 3 months by the company.

Both will have separate PAN.

TDS will be claimed against respective PAN in their IT assessment. So no issues with regards to the transfer of TDS credit.

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