Dear All,
Please resolve my issue: Suppose if a deductor “A” deduct TDS of deductee”B” on provisional amount of Rs. 20,000 @ 10% (i.e. Rs.2,000) on 31st March,2014 for a service because TDS need to deduct on any provision if provision amount covers under XVII-B, since it is not necessary for deductee to book his revenue in March,2014 because service is still not completed. Now from 1st April deductee changes his status from Individual to Firm. Deductee “B” now called as “Firm B”. “Firm B” has its own PAN No. “Firm B” booked its revenue on invoice to deductor “A” on 15/04/2014 for Rs. 20,000.
Since deductor “A” deducts TDS of Rs. 2,000 & submitted his TDS return with the PAN NO. of deductee “B”. Now who is eligible to claim TDS Credit of Rs. 2,000 whether deductee “B” (the individual) or “Firm B”. Kindly note that “Firm B” is not in existence before March,2014 so do take care to suggest me that deductor should revised his TDS Return.
Please suggest with valid supportive evidence or views
CAclubindia
