Hello, One of my Client submitted Income Tax Return ITR 4 of FY 2018-19 with Gross Receipt of Rs45 Lakhs.
There is a notice of Mismatch with Form 26AS.
In 26 AS Gross receipt Shown Rs65Lakh and TDS deducted there on.
Rs65 Lakh Break up :-
45 Lakh Acutal work of 2018-19 as per Books
15 Lakh GST
5 Lakh Advance
please suggest how to reply of Notice in this case.
I assume that your client has got notice u/s 143(2). In my view: (1) no TDS is deductible for GST component in assessee's income, it may be deducted by mistake by deductor. (2) assuming you follow mercantile system of accounting, you should be accounting for advance in next year (FY 2019-20), when transaction is done & you raise final invoice; hence you may offer both advance of Rs. 5 Lakhs & TDS thereon in next AY 1920. I suggest that you may state these facts in your reply subject to your professional judgement.
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