Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Please advice - tds

RITIKA (ARTICLE) (129 Points)

16 March 2013

Hi,

Please Advice me on the following queries:

1. We had outsourced a work to vendor for which payment was made in advance on which TDS was deducted and already paid but TDS return has not been filed. Now that has be cancelled and we want our money back which we paid to him. So how much should we demand i.e payment + TDS deducted or just net payment? Then what about Tds paid? can it be carried forward to next quarter or year?

2. In the above case, TDS return has also filed then What about the payment and TDS which will be reflected in his 26AS? How must we proceed for cancellation?

Reply
Follow
Share

4 Replies

Hemant Kumar (Accounts Manager MBA (Fin) CMA*) (6450 Points)
Replied 16 March 2013

In first case: You have to demand only net amout...You can adjust deposited amount to another party, next quarter.

in second case: You can demand total amount (paid amount + tds)

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Ankit (Chartered Accountant) (107 Points)
Replied 16 March 2013

Case -1: If TDS return has not been filed:

A. You can ask him the refund of net amount only. The TDS deducted on his account can be adjusted and reported towards the TDS deducted by other deductee from whom who have regular dealings.

Case-2: If TDS return has been filed: In this case you will have to file the revised TDS return. There will be two scenarios:

Scenario A: If you are able to adjust the TDS deducted from him towards the TDS deducted by other deductee from whom who have regular dealings. For this purpose, you may have to show that advance has been paid/credited to the vendor. Then you shall ask him for the refund of net amount only.

Scenario B: Here you will have to revise the TDS return by only reporting the TDS deducted from him and will have to report nil in the amount paid/credited column. If any income is reported in the TDS return then the same will be reflected in Form 26AS of teh deductee which is not the factual position. Thereby you can ask him the refund of full amount because the TDS which was deducted from him earlier can be taken back by the deductee by way of refund in his ITR.

1 Like

RITIKA (ARTICLE) (129 Points)
Replied 16 March 2013

In case of First scenario:

But if the advance payment is made in january'13 and TDS has been paid and this amount is much higher than the amount of TDS to be paid for march'13 therefore, in that case is it possible to carry forword to next yr? as the TDS is paid assessment year wise and Section wise . We don't have any other deductee with whom we have regular dealings or with the same section