Tds

TDS 365 views 1 replies

Dear all,

 

My query is there are 2 parties one is Firm & other one is Company.

The firm has taken a premises for rent from a company @ 100,000/- p.m from Aug-2010.

The firm has deducted TDS @ 10% p.m and had paid Rs.720,000/-(i.e. for 8 months from Aug2010-March2011) to Company. But frim has deposited only 50,000 with the department.

In company books it has been recorded as 720,000 rent has been received & 80,000 as TDS receivable.Now the IT department raided the company & they have asked to get the Form16A from the firm.

Now the issue is what will be the tax implication for the Company as they will get Form 16A from the firm for 50,000 only.

How they have to close the TDS receivable a/c in their books.

Both the frim & Companies books have been finalised & return has been filed.

 

Please don't tell me to file a revise return of the firm since it has already been revised 3 times.

 

Please reply me

Replies (1)

the company will have to claim the TDS only to the extent of TDS made by the firm & on the balance they will have to pay the tax.  

I dont know why the co has recorded TDS Receivable for 80K when the firm has made TDS of only 50K.  the co will be requried to reverse the TDS to the tune of 30K in the subsequent year


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