Vikash Kharvar (Dy. Manager -F&A) (469 Points)
18 February 2011Dear All CCI members,
Pl. suggest me on the issue that our Company have provide Business Auxilery Services (i.e. Assembly Charges) to a Pvt. Ltd. Co. for Rs. 1 cr. Approx.
At the time of Payment they have deduct TDS @ 2% undder Section 194C and return file for the same. And the same is display in our Form 26AS on NSDL site.
But as i know it would cover under Sction 194J and the rate should be @ 10% p.a.
What can do i on this regard pl. suggest ASAP.
Regards,
Vikash Kharvar
Pankaj Arora
(Learner)
(3134 Points)
Replied 18 February 2011
If you have contract with company than they deduct tds right but if there is not contract than you are right co. should deduct tds u/s 194J.
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 18 February 2011
Hi
No need to worry so much. Sice u r on the earning side, u doesnt have any responsibility to check the TDS rate at which other party has to deduct the TDS. If he has made mistake, then his expenditure would get disallowed since he is claiming it as an expense. Income tax dept would not ask u any single question when u doesnt have any responsibility in the said matter. U just have to claim TDS what has shown in NSDL TDS data / TDS certificate.
Hope this solves ur query.
Regards,
Manoj B. Gavali
madhura
(director)
(32 Points)
Replied 18 February 2011
sir,i have a query about, act of IT,we have recieved a notice from IT u/s 201 and 206 for what these are actually.pls tell me sir
Pankaj Arora
(Learner)
(3134 Points)
Replied 18 February 2011
Recovery of tax not deducted or short deducted u/s 201 and 20 % tax have to deduct without PAN U/s 206.
madhura
(director)
(32 Points)
Replied 18 February 2011
thanks u very much sir it is very usefull for me.thanks
Vikash Kharvar
(Dy. Manager -F&A)
(469 Points)
Replied 18 February 2011
Dear Manoj B. Gavali Ji,
Thanx for suggestion, i am agree with u.
Regards,
Vikash Kharvar
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