I will be greatful if the following query can be looked at:
Company X had entered into a contract with Company Y. As a signon fees an amount was charged by Company X to Company Y. Company Y deducted TDS on the same. However neither the payable to Company X nor the remittance to the Government for the TDS was made. In the next financial year, the contract was cancelled. Now the question is whether Company Y still has to remit the TDS element to the Government or as the contract is cancelled, it does not have to remit to the Government. If the amount is not remitted does it attract any penalty. Case law reference would be really appreciated.
10 November 2009
Once TDS is deducted it has to be remitted to the government within 7 days from the end of the month in which it was deducted and a TDS certificate has to issued to the beneficiary.
CAclubindia
