Nikita Agarwal (CA) (43 Points)
15 February 2013One of my client is a private limited company. It has interest income on the loans & advances made. TDS on such income gets deduct on the last day of every year when such income is credited in the books of accounts. Every year sufficient amount of TDS gets deduct which exceeds the tax liability of the company and the company claims refund. So my question is whether will be liable to pay advance tax quarterly ??
Please guide me on this.
Thank you.
Milan Agrawal
(Chartered Accountant)
(207 Points)
Replied 15 February 2013
Dear Nikita,
Advance Tax is payable when your total tax liability after deducting TDS & TCS exceeds the prescribed limit. Hence, your client need not pay Advance Tax as it has Tax refundable after deducting TDS.
Regards,
Milan Agrawal
Abhisek Rungta
(PRACTISING CHARTERED ACCOUNTANT)
(234 Points)
Replied 15 February 2013
Yes no need to Deduct TDS as your TDS is more than Tax Liability.
Milan Agrawal
(Chartered Accountant)
(207 Points)
Replied 15 February 2013
Dear Abhisek,
I guess, you mean to say no need to "Pay Advance Tax" as your TDS is more than Tax Liability.
Debajyoti Chakraborty
(Partner)
(25 Points)
Replied 15 February 2013
Dear Nikita,
Since the tax deducted at sources sufficiently covers the total tax liability of your client company, the question of payment of Advance Tax does not rises.
Nikita Agarwal
(CA)
(43 Points)
Replied 15 February 2013
Thank you all for guiding me.
But sir as on today, no TDS for the company has been deducted. Entire TDS will get deduct on 31st march. And advance tax liability for the company arises quarterly. So still the company is not required to pay any advance tax for A.Y. 2013-14 ??
ravi tej
(ca final)
(392 Points)
Replied 15 February 2013
Any person whose income tax liability exceeds or equals to Rs. 10,000 in previous year then such person is liable to pay advance tax from next financial year onwards.
Milan Agrawal
(Chartered Accountant)
(207 Points)
Replied 16 February 2013
Dear Nikita,
Even if the TDS is deducted on 31st March, your client is not required to pay advance tax if the total tax liability after deducting TDS,TCS is nil or refundable for that particular F.Y.
Hope it will clear your doubts.
Regards,
Milan Agrawal
CA Ketan Waghela
(Partner at Elite Educare)
(356 Points)
Replied 16 February 2013
Nikitaji,
I agree with CA. Milan Agrawalji and I would like to add to his answer.
Advance tax calculated on estimated total income of the assessee for the entire year. Though liability to pay arises quarterly, but income is estimated for the full year.
In your case TDS is sufficient to cover tax liability then no advance tax is payable.
Nikita Agarwal
(CA)
(43 Points)
Replied 16 February 2013
Thank you very much to all of you for guiding me. I am now clear with my doubt.
CAclubindia
