darshan (AUDITOR) (223 Points)
21 June 2010
we have two companies and other company is incorporated in july, hence some of the staff were shifted to new company, my query is what would be the tds deduction effect,both the compny has not yet paid tds on salary,
1) shall it be dedcted from old company for first quarter
2) wholly deduct tds from new company
or any other way
Amir
(Learner)
(4016 Points)
Replied 21 June 2010
Dear Sir,
Each company is liable to deduct TDS based on the estimated taxable salary.
Akhil Gupta
(Manager F&A)
(856 Points)
Replied 21 June 2010
| Originally posted by : darshan | ||
 |
we have two companies and other company is incorporated in july, hence some of the staff were shifted to new company, my query is what would be the tds deduction effect,both the compny has not yet paid tds on salary, 1) shall it be dedcted from old company for first quarter 2) wholly deduct tds from new company or any other way |
 |
As you said that you had not deducted TDS yet from either company it is presumed that salary was already paid without deducting TDS. Therefore you shoul satrt deducting TDs from onward salary payment in the new company.
CA Ayush Agarwal
(Kolkata-Pune-Mumbai)
(27186 Points)
Replied 21 June 2010
The Liablity of Deduction of TDS Of First Quarter is of First Company.
& After July I Mean From II nd Quarter Liablity of Second Company.
The First Company Should Deduct TDS in Full...............I Mean With Tax Liablity+Education Cess.........
manisha grover
(CA Finals )
(61 Points)
Replied 21 June 2010
The liability to deduct TDS in of first company and if it failed to do so can't claim the deduction of expenditure and the company is separate entity whether shareholders or directors are same of both companies.
later on for the second qtr. the liablity is of new company
manish
(Article Assitant)
(358 Points)
Replied 22 June 2010
In my opinion,
if at the time of first quarter come did not deduct tds and file the return. then the whole tds for the all period should be deducted by the new company. the salary of employee is paid after deducting tds and full tds should be paid to the govt before the due dates of tds return.
NARENDER PAWAR
(CA final Student)
(337 Points)
Replied 22 June 2010
Vidisha
(PRACTISING CA)
(172 Points)
Replied 22 June 2010
The Newly incorporated company will pay the amount of TDS liable to it...................The older company will pay whatever amount it has to pay.Since tax was deducted earlier and not at time of payment, hence payment cannot be avoided
CAclubindia
