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TDS

CA Raghavender (CHARTERED ACCOUNTANT) (305 Points)

26 November 2009

Hi members,

A Company receive amount from it's clients gross amount(with out deducting TDS, which is eligible for TDS), what would be happen.

Thanks & Regards--

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7 Replies

Sunil (Trader) (2611 Points)
Replied 26 November 2009

TDS is against payents being made to someone and not when you collect from customer. The latter is TCS and that is not deducted from any bill. It is in addition to your bill and it is payable to the departmnent whether the customer pays it or not. This is usually on sale of scrap.

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CA Abhash Mishra (Chartered Accountants) (598 Points)
Replied 26 November 2009

TDS DEDUCTION IS THE RESPONSIBILITY OF THE PAYER IF ANY COMPANY HAVE RECEIVED ANY PAYMENT WITHOUT ANY DEDUCTION OF TDS COMPANY SHOUD TO POSIT DVANCE TAX TIMELY.

ABHASH

CA Raghavender (CHARTERED ACCOUNTANT) (305 Points)
Replied 26 November 2009

Hi sunil thanks for ur reply, I am asking criteria not question, Company deducting TDS while making payments (where TDS applicable, but customers make payments without deducting TDS)

thanks Abhashmishra I got it.

Sunil (Trader) (2611 Points)
Replied 26 November 2009

As long as you pay advance tax on schedule there is no liability for you if the payer has not deducted TDS. Keep proper records of address of the payer and ensure that at any time it is verifiable if AO thinks it is necessary for him to verify your source. There are no rules for this. It is just a practice.