SANJAY MAHESHWARI ACA ACS (Chartered Accountant) (123 Points)
07 January 2013If the TDS for a Financial Year has been deducted for a Company Assessee and now the Company wants that further no TDS should be deducted on its receipts than what procedure to be followed or which form to be filled. The contention of the company is that it will have Tax liability of around Rs.10 lacs but its TDS already so deducted is around Rs.40 lacs so it want no further deduction of TDS on its receipts.
Please Answer in Detail.
MAHESH GARG
(AUDIT EXECUTIVE)
(334 Points)
Replied 07 January 2013
An application is to be submitted to the A.O requestiing lower deduction of tax u/s 197 of the income tax act
TDS to be deducted cannot be reduced to Nil only rate can be lowered down by the A.O
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 07 January 2013
Mahesh
I have asked this question in this Forum earlier , but did not get suitable response. Hence I am asking you.
Here the relevant Form is Form 13. Is it required to be submitted by the deductee to its AO of income where ITR is filed or AO of TDS ward where quarterly TDS returns are furnished.
Sanjay : Just to add, normally the Dept issues lower rate certificate for a particular value and there is also a date range.,ie, the certificate is valid till..... of a FY.
Regards,
MAHESH GARG
(AUDIT EXECUTIVE)
(334 Points)
Replied 07 January 2013
Dear Dipjyoti,
Application is to be filed to A.O assessing ur income
SANJAY MAHESHWARI ACA ACS
(Chartered Accountant)
(123 Points)
Replied 08 January 2013
Please tell whether a Company having 2nd year of business can fill Form 13 and satisfy the required conditions.
Sivaguru SM
(Tax Consultant)
(235 Points)
Replied 08 January 2013
You may proceed by filing Form-13 satisfying conditions. Now AO (TDS circle) only accepting Form-13.
Yogesh Shah
(Managing Corporate Finance)
(1051 Points)
Replied 08 January 2013
Hi Folks,
Here I am giving procedure I HAD followed some months ago for getting 'TDS NIL rate / lower rate deduction certificate'.
(Answer to the question is perfectly given by other members. I am just sharing practical things I came across)
1) We (on behalf of client) first made an application to the jurisdicted AO explaining him that why we need such certificate. In our case reasons were that entity was suffering from heavy losses since last many years.
In your case, some other reasons may be there.
2) Then, along with it, we also filed Form No. 13
3) After processing of application by AO, he demanded some more info like details of earlier TDS deductions, TANs of all deductees, copies of Form 16A and importatntly copies of last few years ITR copies.
4) AND LAST BUT NOT LEAST - after performing all the above procedures, we gave some 'consideration' to AO and then our application was accepted and entity got 'Lower Rate Deduction Certificate' (we were seeking NIL rate certificate but he gave for lower rate)
Rajagopalakrishnan R
(PARTNER)
(1422 Points)
Replied 08 January 2013
The correct procedure would be to make an application to ITO(TDS or ACIT(TDS) having jurisdiction over you. File Form 13 along with a checklist (which is slightly modified circle to circle). Normally 3 years financial statements and return/computation copies are to be submitted. Additional u may also have to submt proof of deduction in current financial year.
The process inside the department is like:
ITOTDS/ACIT TDS scrutinises the form 13 and annexures for completeness and requests for a report frm your Assessing officer. On receipt of favourable report, the same is forwarded to Joint commissioner TDS for approval. In case tax deduction amounts are large, theapproval may have to come from CIT(TDS). once teh approval is made a system entry has to be made to the ITO TDS/ACIT TDS. After the entry the certificate will be issued one copy to you and one copy directly to your deductor. If you have multiple deductors, you must take care to include all of them in the annexures to form 13. Now a days no general exemption certificates are issued except in foreign section. Each lower deduction certifcate is TAN specific for each deductor.
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