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will we recd. credit for TDS

prakrut (accountant) (120 Points)

01 July 2009

Dear sir

We recd. Hard Copy of TDS Certificate from our customer . In some case we found that there is a diffrence between hard copy of tds certificate recd. and e-e-tds return file by our customer . pls confim on which amount we get credit as per hard copy of certificate or as per E-tds retrun amount

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5 Replies

PRAVEEN KUMAR (MBA (Finance) B.Com.(P)) (3443 Points)
Replied 01 July 2009

If Party has issued TDS Certificate, It means figure in certificate are final

efiling if wrongly done by deductor he has to rectify, not a fault of Deductee.

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CA Anand Pansare (CA) (32 Points)
Replied 04 July 2009

Agreed. But in case of professionals, who prepare tax books on cash basis, there is a problem of taking tax credit of TDS.

eg: An audit client makes the provision of Audit Fees payable of Rs. 50000/- on 31st March and deducts the Tax on the amount Rs. 5150/-

the amount will be received in next financial year whereas tax credit will be effected for the previous year. Will the Income Tax Department allow tax credit for this situation ?

this scenario becomes worse if the Auditee has the Tax Audit and the Auditor does not.

Please comment on this.

thanks in advance

Ramakrishna (Financial Executive) (438 Points)
Replied 04 July 2009

Dear Anand!

Though the present system of e-TDS returns would show the tax amount as credit pertaining to the particular FY in which the deduction has been made, the provisions of Section 199 clearly provides the way the assessee can claim credit for the tax deducted or collected in his case.

Section 199 clearly states that the credit for TDS/TCS would be provided in the case of the deductee for the AY for which the income is assessable.

Therefore, in cases adopting cash basis, there shouldn't be any problem.

Do post your response!

Good Bye! Cheers!!

MAHENDRA KUMAR BAGRECHA (FCA) (1402 Points)
Replied 05 July 2009

You should get TDS credit as per hard copies of TDS certificates. There are chances that eTDS return filed wrong which needs to be revised. You also can subscribe for form no.AS26 and as per my view, everybody should subscribe for that.

VIPUL BUBNA (MANAGER TAXATION) (119 Points)
Replied 05 July 2009

Yes you have to claim the TDS credit in your return as per the hard copy of TDS certificate received by you, as your customer can always revise the TDS return filed by him.