Tds u/s 194c - short deduction

Deepak Kishwar (Finance Professional) (43 Points)

22 November 2012  

Dear All,

 

My co. makes lot of payment to contractors, and have received various notices for past years, Mostly because of short deduction. Tax has been deducted short actually for the the Qtr based on the payment made in that Qtr. But on close scrutniy it was found in some cases tax has been deducted in excess in previous qtr (more than 2%) , so the party has been given credit of amt deducted in excess towards tax.

Is there any way for correcting this type of issue or we have to recover the short deduction of tax and no credit should be given for tax deducted in excess in previous qtr.

Let me explain by example

Month                       Amount Paid                         TDS  (u/s 194C)

Apr'11                          60000                             1000.00  

Aug'11                         60000                             1400.00           (1200.00 + 200 towards TDS deducted short in Apr'11)

Is there a way to corelate this in e-return and as ITD has raised demand notice for Qtr 1 for 200/- . Is there any other way to resolve this problem as the tax has been fuilly recovered from the vendor and has been deposited also with ITD. MAy pls guide

 

Kindly help  plsss