Tds issue

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

13 December 2011 Can we claim TDS on Income deducted by any Co earlier. and After one quarter that Income is reversed & net amount( less TDS paid Back)

Case :-
•If We have invoiced a Pvt Ltd Co for domestic sales from April 2011 to June 2011 for around Rs. 1103K (inclusive of Service Tax)
•the Co. has paid us net amount of around Rs. 941K/- after deducting TDS of Rs. 104K/-
•In June end we have reversed entire Revenue charged to pvt ltd Co.

Now we have to refund the amount received to Pvt Co..

Please reply if we can avail credit of the TDS deducted by Pvt Ltd Co. while computing tax for FY 2011-12 or the same should be considered as expenses in our books & would be disallowed?

Guest

Guest (Expert)

13 December 2011 Certainly you can not claim TDS. Since you have refunded the NET amount which you received from that private limited company.

Ratan Sharma

Ratan Sharma (Expert)
Follow

13 December 2011 TDS is a type of advance tax paid by the assessee. In my opinion you should claim the TDS in your return of income. The pvt ltd company has deducted the tax and paid with the govt therefore that company could not get back the refund of TDS made. It is only you who can get the credit of TDS made by pvt ltd co. Therefore in my opinion you should claim the TDS in your return of income. After receipt of refund whether you return the same to the pvt ltd co or not is a different issue. There is no question in debiting the same as expenditure in your accounts. You should show it as a TDS receivable account. Whether you have shown the income of TDS made or not is a irrelevant. It is like an advance tax paid by other person on behalf of you.

Upgrade to CAclubindia Pro. Subscribe Now!

anurag

anurag (Expert)
Follow

13 December 2011 Ask the company to revise the TDS return and make an application for the refund of tds to their ITO.
make pressure on the company to give the tds amt to u , when the are in the process of getting it from their ITO ward.

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2011 thanks to all...

Can anyone reply with any supporting of Case law or Section to support the opinion..

Ratan Sir@what happen when ITO ask for Income on which we are claiming TDS...at the time of scruitny???

Anurag Sir@it is not possible to do this. is there any other way???

please let me know