Tds non deducted

TDS 936 views 6 replies

i have querry that one of my client had not deducted TDS from Transportation exp.

the order is for 2008-09.

so plz helpl me if there is any guidence for lesser tax. the amount is nearby 50 Lakh total of Transportation exp

 

Replies (6)

Please tell us whether your client recorded transport expense in 2008-09?

If yes, then you have to deduct @ 2.27% + you have to pay Interest & penalty.

This will be become huge burden. 

If your client recorded in this FY, the rate is 1% or 2% (as the case may be)

The Interest and Penalty provisions are clearly mentioned in the Act and we cant escape from them.

Your client will have less tax if the expenditure is recorded at actual time of payment i.e current FY

Agree with Vishnupriya. .There will be huge burden of interest and penalty at the rate 1% and 1.5% pm..Check the facts those Vishnupriya has asked.

yes that expenses was recored at 2008-09 but in assessmet they will find such tds deduction failure.

but also one problem is that at that time it was proprietory ship but now it is partnership  firm.

 

The conversion of proprietor ship into partnership does not relieve the assessee from the liability of paying interest & penalty and from complying other provisions of the ACT.

The only thing your client is supposed to do is reapply for TAN in the status of partnership and pay the TDS with penalty & interest which was liable from 2008-09.

is there any way or deduction? becoz this is tha mistak of both accountant and also CA.

this is done due to the careless of CA and Accountant.

 

I think there is no other way to escape. But advise your client to clear the dues to IT Department before they issue any show cause notice in this regard & make more difficult to you. They wont accept the reasons like default of Auditor etc...


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