vamsi netha (Sr Accountant) (57 Points)
11 December 2013Hi,
One of our vendor sent us a low deduction of TDS certificate according to it the limit was 350k. where as we have paid him 360k. now we have got notice from the IT dept asking us to pay the difference of tax on 10k (2%-0.56%). we have no business transactions with this vendor. If we pay the difference of the tax and file revised return this vendor gets form 16A for that amount. Is he under obligation to pay the difference of the amount to us?
Thanks,
VN
It was your responsibility to deduct tax @ 2% on Rs 10000/- but you deducted 0.56%..now you should pay the balance. Whether the supplier will repay it to you depends on the relations with your company.
Fortunately the difference 2%-.056%=1.44%
1.44% on Rs 10000/- is just Rs144/-..why don't you pay it?
Suresh Kumar
( )
(60 Points)
Replied 12 December 2013
| Originally posted by : Madhavi | ||
 |
It was your responsibility to deduct tax @ 2% on Rs 10000/- but you deducted 0.56%..now you should pay the balance. Whether the supplier will repay it to you depends on the relations with your company. Fortunately the difference 2%-.056%=1.44% 1.44% on Rs 10000/- is just Rs144/-..why don't you pay it? |
 |
CA Vanamala Phani Kumar
(Proprietor of M/s Vanamala and Co)
(972 Points)
Replied 12 December 2013
| Originally posted by : vamsi netha | ||
|
Hi, One of our vendor sent us a low deduction of TDS certificate according to it the limit was 350k. where as we have paid him 360k. now we have got notice from the IT dept asking us to pay the difference of tax on 10k (2%-0.56%). we have no business transactions with this vendor. If we pay the difference of the tax and file revised return this vendor gets form 16A for that amount. Is he under obligation to pay the difference of the amount to us? Thanks, VN |
|
Bhayya, I think, you may be wrongly filed your TDS Rerun
When vendor given you lower deduction certificate .. you have to mention
Lower Deduction Rate in TDS return
:)
CAclubindia
