Mallikarjuna Gupta (Service) (68 Points)
30 October 2009
One of the suppliers has obtained tax to be deducted at Zero Rate from the ITO and he is insisting to issue TDS certificate with Zero Tax amount, can we issue TDS certificate with Zero Tax amount. The question here is do I need to issue the TDS certificate with Zero Tax amount or not?
GAURAV BEHL
(CA-FINAL )
(228 Points)
Replied 30 October 2009
you dont have to issue a tds certificate..but there is no harm in issuing zero tax certificate...
GAURAV BEHL
(CA-FINAL )
(228 Points)
Replied 30 October 2009
you dont have to issue a tds certificate..but there is no harm in issuing zero tax certificate...
Ram Avtar Singh
(Nagari Sultanpur U.P.Delhi)
(14487 Points)
Replied 30 October 2009
Only ledger confirmation if enough for that.
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 30 October 2009
The form is for deduction of tax and there can't be any certificate for zero deduction of tax. So, No need to issue zero tax certificate.
Sunil
(Trader)
(2611 Points)
Replied 30 October 2009
TDS is basically for Tax Deducted at Source. Therefore a ledger record should be sufficient if no TDS..
My mother had submitted her form 15H a bit late to the bank. Therefore some TDS had got deducted and we had to claim refund. Bank gave the TDS certificate with a full statement on the reverse showing even the entries where zero TDS after issuing Form 15 H. When I checked Form 26AS all the entries of TDS against interest payment where there including the 'nil' TDS and it shows as tax deducted 0.00. This was for Assessment Year 2009-2010. In earlier years only the TDS deducted entries were visible. Somehow,this year wherever Form 15H was issued in time, nil TDS also seems to be booked. Must be something with Annual TDS returns filed by deductor or Government must be asking banks to also file return for non TDS interest so they have better control on interest accrued to assessee. Therefore we ought to check about a 'nil' TDS certificate. A banker did tell me they have to file a seperate AIR return for deposits over Rs.50000 where PAN Number ought to be furnished but No TDS is on account of interest below 10,000. Maybe they have to also file a seperate return giving PAN numbers where 15/G or 15/H is issued and they have to indicate amount credited / paid and Tax = 0.00. Possibly these are all visible in the 26AS. However for these business / profession TDS, the certificate u/s 197 is usually issued by the ITO and I do not think they call for nil Form 16A as evidence. They are only interested in ensuring that assessee has offered for taxation even that receipt on which no TDS is done and that can be proved with billing and ledger. I have a feeling that Asst Year 2009-2010 or maybe 2010-2011, all these 0.00 Tax entries against the forms u/s 197 will be visible in the 26AS.
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
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