TDS matters
This query is : Resolved
11 May 2009
Dear All,
One of my assessee has not deducted TDS U/S 194C while making payment, however the contractee is a sick unit.
& my assessee has not even collected No TDS certificate from the contractee. in this case Assessee is in default, but on the other side if we look that if assessee would have dedcted TDS, the contractee has claimed it as refund.
in this situation the goverment has not lost any revenue,instead Govt would require to pay Interest on refund.
Now if A.O. has disallowed such expense can i defend on the above stated basis.
Has there any such incident taken place in the past, kindly provide the reference for the same.
Thanks & Regards...
One of my assessee has not deducted TDS U/S 194C while making payment, however the contractee is a sick unit.
& my assessee has not even collected No TDS certificate from the contractee. in this case Assessee is in default, but on the other side if we look that if assessee would have dedcted TDS, the contractee has claimed it as refund.
in this situation the goverment has not lost any revenue,instead Govt would require to pay Interest on refund.
Now if A.O. has disallowed such expense can i defend on the above stated basis.
Has there any such incident taken place in the past, kindly provide the reference for the same.
Thanks & Regards...
11 May 2009
the view taken by you is not correct. In this situation government loosing interest that it can earn on the deposit of the TDS. and other side govt. has to pay interest on refund after the 3 months from the submission of the refund claim and that to only @6 pa. So, it's advisable to pay the whole amount of TDS with interest. there are no. of high courts decision available in this regard.
11 May 2009
Yes, you are right department has not lost revenue. But that doesn't mean that you should not follow the section & section notes. It is not mentioned anywhere.
Also note such kind of explanation will not entertained during scrutiny. It is better you himself do the disallowance of expenditure.
Also note such kind of explanation will not entertained during scrutiny. It is better you himself do the disallowance of expenditure.
11 May 2009
There are case laws where the courts have held that the if the deductee has paid the tax in full, the deductor is not liable to interest u/s 201(1A) as the revenue is not at loss. I think that this makes sense for your to argue before the authorities that since revenue is not at loss as the deductee has paid tax on no tax is payable in the case of deductee, no disallowance should be made in the assessment of the deductor. You can seek help from the following cases -
CIT VS Rishikesh Apartments Co-op Housing Soceity Ltd. 119 Taxmann 239 Gujrat GC
and
CIT Vs Adidas India Limited 157 Taxmann 521.
If you need further help, let me know.
CIT VS Rishikesh Apartments Co-op Housing Soceity Ltd. 119 Taxmann 239 Gujrat GC
and
CIT Vs Adidas India Limited 157 Taxmann 521.
If you need further help, let me know.
12 May 2009
Thanks & Ragards.
Deepak Makhija.
Deepak Makhija.
13 May 2009
your point of not deducting TDS is not correct. you can ask the supplier to approach TDS circle & get the exemption certificate.hence you deduct TDS even if it is sick company in order to avoid disallowance
13 May 2009
your point of not deducting TDS is not correct. you can ask the supplier to approach TDS circle & get the exemption certificate.hence you deduct TDS even if it is sick company in order to avoid disallowance
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
