Tds deducted individual pan instead of partnership firm

This query is : Resolved

S ELAVARASI (Querist)
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05 January 2018 Sir.,

In a partnership firm. They are deal Mfg & Services trade Name "SEAL ENGINEERING" started on 02/12/2011 with Two Partners... Also one of the Partner run PROPRIETORSHIP businesss the same name on or before starting Partnership firm. Now he is closed the Proprietory firm on 06/08/2012...

The Partnership firm give service to One of the customer. The Customer deduct & Deposit TDS mistakenly in Proprietorship Firm name and his PAN till the Date. Also the Payment received after less the amount. I found the Details in Last month. The customer will not revise the TDS returns... In this situation

What can I do...?

How to account the balance amount for deducting amount?

Please give your valuable Solutions...

ND (Expert)
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06 January 2018 Before answering this query please clarify in which bank account the fee was deposited. If the fee was deposited in the bank account of the partnership firm, then this income has been offered for tax in the hands of partnership firm. Therefore TDS on this income should also be claimed in the partnership firm only. You prepare an application addressed to the Income Tax Department, state all the facts, give an indemnity that TDS has not been claimed any where else except in the hands of partnership firm and meet the concerned Income Tax Officer and explain all the facts. Once the officer is satisfied then credit for this TDS will be given in the name of partnership.
However if the fee has been received in the bank account of the partner and TDS is also claimed in the name of partner, then show that income in the hands of the partner only. Later on raise an invoice from the form to the partner and claim that income in the name of firm.

S ELAVARASI

S ELAVARASI (Querist)
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06 January 2018 Sir.,
The Service bill raised from Partnership Firm to Customer (Say Rs. 10000). The Customer Paid Rs. 9900 against the bill. Balance will be deposited as TDS in Individual PAN...

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