11 June 2010
Dear Friends please clarify my doubt. ours is MNC and i am working as an accountant. In one case while recovering the Tds @ 2%-for corporarte assesee we have deducted @ 1% what is the impact and solution for that. Secondly while recovering the Tds from individuals @ 1% we have deducted tds @ 2% for FY 2009-10. is we have to pay any penalty for less recover ? what is its impact. please clarify my doubts.
11 June 2010
Dear Bhaskar, In case of over recovery there is no problem. If you have deposited the excess amount so deducted. Then you can provide the TDS certificate to the deductee and he will get claim. But in case you have short deducted TDS then deposited such shortfall amount as soon as possible otherwise your proportionate exp on which TDS is not deducted stand to be disallowed.
11 June 2010
Dear Bhaskar Your proporionate exp will be disallowed in f.y.2009-10. but if you depositing TDS in F.y. 10-11 then your expenses will be allowed for this year. Regards Pragnesh
12 June 2010
Thank you Mr. Sanjay Gupta and Mr. Pragnesh. for your valuable replies. still I have one more doubt in one case while calculating TDs I have ignored surcharge by mistake ( 10% surcharge is required to be added to the rate if the payment exceeds Rs. 10 lac. is it a serious problem if I forgot to deduct surcharge ?
14 June 2010
Avoid it. From 1st Oct. 2009 surcharge and educ. cess is not applicable on any of resident payment. Don't take this matter very seriously.
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