Deduction in TDS refund.

Kumar Thakur (Operation Manager) (24 Points)

24 December 2009  

Dear Members,

     I am here a very new member.

I have a queiry regarding TDS. There is one financial institution (can not take name) who is liable to pay the tax is not paying itself and on behalf of this customers pay themselves the TDS and at the end of tenure they did not pay back the amount.

And at last they back it after deducting 20% of total amount (only 80%).

How far it is fair and justifiable?

Please reply me.  Is there any rule to deduct 20% of TDS for the delay payment which is made by the company itself whereas customer has paid all the amount on time and has also submitted all the documents just after the financial year.

 

A