tds - non deduction certificate u/s 197 (1)

This query is : Resolved

harshit (Querist)
Follow

12 December 2007 we deducted tds from party, but not deposited into bank. (deducted on 10-12-07).

party showing "Certifiate u/s 197(1) of the IT Act,1961 authorising non-deduction of Tax at source (on 12-12-07)

Now, we are paid the tds (deducted amount) to party or any thing?

please tell me the solutions immediately sir.

KAUSTUBH M JOSHI

KAUSTUBH M JOSHI (Expert)
Follow

12 December 2007 whether you have paid that amount into bank or that party please specify

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
Follow

13 December 2007 In your case it seems that Lower Deduction Certificate is issued after the due date of deduction of taxes.
In my opinion as on the due date of deduction of taxes, the deductee was not having any such certificate, hence you should not take any U turn the amount of TDS deducted should be deposited o the Bank. I dont think that the certificate issued by the Deptt. contains any retrospective provision.

Upgrade to CAclubindia Pro. Subscribe Now!