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TDS deduction on xerox bill

JAYESH M GANDHI (PROPRITOR) (34 Points)

23 April 2012

Dear Sir

I have Xerox shop at Baroda & deal with many Banks & MNC Company. They are informing to me. F.Y. 2012-13 they deducted TDS form my bills @ rate 2.3 Because My bills amount is more than 30,000/-. Pl guides us how we return TDS Form IT Department. TDS is dedicated is write or Wrong.

As per reply We talk with Nationalised Bank & They give circular issed by IT in this circular nothing mention regarding written aggrment & Pl proide if any supporting doucment etc

Jayesh Gandhi

Baroda - 9824481632

arihant_gandhi @ yahoo.co.in

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5 Replies

CA Rakesh Goenka (CA & CS) (872 Points)
Replied 23 April 2012

Listen if u have any writen document( contract with Comany ) then u r liable for TDS but if between u and company if there is no, any writen document then u not liable to TDS and company don,t have right to deduct TDS............

2 Like

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Shewta (Accountant) (117 Points)
Replied 23 April 2012

I agree with Rakesh.

You should have written document of contract to get Liable for TDS. :)

Maruthi (Tds Returns Preparer) (207 Points)
Replied 23 April 2012

First you should clarify wether any contract made between you and bank.

and eventhough the bank is ready to deduct tds from your receipts, the bank should deduct only 1% of tds because you are a proprietor(Individual).

Regards

Renjith.R.s. (Manager-Accounts) (641 Points)
Replied 23 April 2012

Suppose if there is no written agreement, if total amount is above TDs limit, there is no need for deducting TDS? Then how this expense will treat i unde IT act?

Amol S Joglekar (Partner) (63520 Points)
Replied 24 April 2012

Income tax is SILENT on the form of contract (Express or implied). The TDS done by the banks is correct. For you it will act as advance tax. After 31/03/2013, compute your income (including profit from xerox business). Assuming it to be below 2 lakh, you can claim the TDS as REFUND.