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TDS Vs. Advance Tax

CA Naveen Kumar Agrawal (Chartered Accountant / MBA) (939 Points)

29 August 2008

Dear friends,

I Have a Query on TDS. Looking for a Quick n Correct Reply from any of my all brilliant n genious frends.

A Private Ltd. Co. has Deposited the TDS (on Directors' Salary) thru a advance tax challan in the name of Company (metioning PAN of the Co. there in) instead of a TDS Challan (which should have been deposited by the co. mentioning there in the TAN of the Co.)

Co. has communicated wid d Concerned Authority in IT Department. n they replied its none of the matter to be considered by IT Deptt.. & d Co. Should communicate wid NSDL for further assistance.

Pls Reply ASAP.

Thanx n Regards,

CA Naveen

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4 Replies

Shubhankar Limaye (B.Com.) (174 Points)
Replied 29 August 2008

Sir,

There is not recourse available to the company. Such error cannot be rectified. Contacting NSDL would hardly be helpful as they will direct you to Income Tax Department. The company therefore has to deposit the tax deducted on director's separately through another challan. The company can treat this payment as an installment of advance tax in respect of Corporate Income Tax.

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Vijay Budhwani (AVP Tax) (326 Points)
Replied 29 August 2008

I agree with Shubhankar, the only recourse available is pay the TDS amount again and claim the amount paid previously as advance tax paid on income.

CA Annie (Chartered Accountant ) (747 Points)
Replied 29 August 2008

The easiest course is to treat it as advance tax and claim it/avail refund. All other measures even if it may turn successfull might not happen quite as fast as we want to considering the way things work in India.

CA Naveen Kumar Agrawal (Chartered Accountant / MBA) (939 Points)
Replied 29 August 2008

thanx dear once again 4 ur prompt reply. even me suggested d same solution to the directors of d co. but they r not agree wid dis, just b'coz co. is zero tax co. hence it need not to pay advance tax at all. ne way... now refund will be claimed from d deptt.