Tds wrongly deducted.

This query is : Resolved

CA Atul (Querist)
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16 May 2009 we are having Partnership Firms our partner was done interior work for their own house but the payment made to Contractor from Firms which is wrong also we deduct TDS on that bill amount now what we can do.......???????????

jegannath G

jegannath G (Expert)
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17 May 2009 Please issue the TDS certificate to the contractor

But treat the expenses as capital -drawings

CA Anil Jain

CA Anil Jain (Expert)
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03 December 2009 If not yet deposited, refund the same to the contractor and pass necessary entry

If deposited, but TDS return not yet filed, refund the same to the contractor and adjust the same with other deductible TDS.

If TDS return has been duly filed, issue him TDS certificate, he will claim while filing his Income Tax Return.

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