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I have not deducted TDS on a bill of Rs. 47445. How should a

Ruchi Agrawal (law) (129 Points)

16 June 2010

I have not deducted TDS on a bill of Rs. 47445. How should a deduct now?

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11 Replies

praveen (Chartered Accountant) (6971 Points)
Replied 16 June 2010

please deduct it now and immedietly pay it ...

other wise the same amount would be added back to your taxable income.

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PRATEEK (ACA) (102 Points)
Replied 17 June 2010

there are 2 alternate to this situation

firstly you can pay the amount by yourself and collect the same amount from the payee

secondly ypu can recover the tax amount from the payee

Sachin B. Gupta (Service) (45 Points)
Replied 17 June 2010

If the bill is from your regular supplier and TDS is applicable on it then u should deduct it from the supplier account and pay it to the Govt. before due date of filing the return of it if March month bill otherwise the full expense will get disallowed. Please not if u think to bear the TDS amount by your own pocket then also it will be disallowed because it will be treated as diversion of income. According to the TDS provision u have to deduct and then pay to the appropriate authority within the the time allowed.

Vinay Verma (Chareterd Accountant) (143 Points)
Replied 17 June 2010

I fully agree with Sachin B. Gupta ...............

CA Devanshi Gandhi (Ajani) (FCA DISA Mcom CIFRS & LLB) (9060 Points)
Replied 17 June 2010

agree

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Shudhanshu Agrawal (Business) (2570 Points)
Replied 17 June 2010

I would like to correct you all. Finance Act 2010 has amended Section 40(a). There will be no disallowance if after deduction made during the previous year for TDS is deposited on or before filing the ROI u/s 139. So there will be no segregation of march and other months

1 Like

(Guest)

Hello Friends,

In case if we forget to deduct TDS from the party, can we pay the TDS amount from our own pocket in order to make the expense allowable.

Neha (ARTICLE ASSISSTANT) (47 Points)
Replied 21 June 2010

I am also agree with Sachin B. Gupta

Sachin B. Gupta (Service) (45 Points)
Replied 22 June 2010

Hello Krishna,

You cannot bear the TDS amount out of your own pocket in case u forgot to deduct the TDS amount. You first have to recover it from the payee of the expnese and then you have to remit it to the appropriate authority with in the time allowed.

Regards,

Sachin Gupta

CA CS Ravi Mehata (Chief Manager- Cost and Auditing) (178 Points)
Replied 24 June 2010

i would support the answer of mr. Subhanshu Agerwal.

We have no need to make Segreegation.

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Shudhanshu Agrawal (Business) (2570 Points)
Replied 24 June 2010

Under this situation deduct the TDS from the bill and show the TDS amount as excess amount paid to the creditor and in subsequent year set off the excess amount but if no transaction in the subsequent year takes place then continue to show him as a debtor in your books.