25 September 2012
Dear All, I hereby refer a case wherein we have deducted & paid the TDS of an assessee located outside India, based on the monthly provision we do in our books. Later on receipt of the invoice, we found that we have deducted the TDS in excess of the actual liability on receipt of actual invoice. Since, we have paid excess TDS, we offered vendor to accept TDS certificate for higher amount, but vendor rejected our request to accept the TDS certificate for the excess amount. Accordingly, we filed a refund claim, and on non-receipt of any reply from the department, we started following up and recently we were asked to fill a form called “Checklist for claim of refund of TDS under Circular 7/2007 dated 23.10.2007” in which we are asked to fill the following details: 1) Under which sub-para of para 2 of the circular 7/2007, the applicant’s case is claimed to be covered 2) What does the claimed sub para of para 2 of the circular say. I hereby request you all to please help me fill the above 2 details, since our claim is not listed in any of the sub-para of the para 2 of Circular 7/2007
4.1 It has been decided that, this amount can be refunded, with prior approval of the Chief Commissioner of Income-tax or the Director General of Income-tax concerned, to the person who deducted it from the payment to the non-resident, under section 195.
Your case is different form that of cases specified in para 2 of the circular, however you can fill the checklist considering sub clause (g)of para 2 of circular. and whenever the AO demads details you can provide that the TDS is wrongly deducted in excess. The AO can take approval of chief commissioner and grant your refund.
CAclubindia
