Q & A:TDS paid on same bill twice

[P.D.RUNGTA]

Query:

TDS paid on same bill twice 

Dear All, 

One of my clients has paid for same bill to some party twice from two of 
his group companies and deducted the TDS twice and also deposited the 
same. Now they have got to know that, the bill has been paid twice. They 
communicated with the party, the party is agreed to refund the one bill 
amount less the TDS on it. So now can anyone suggest me that what will be 
the appropriate treatment on these circumstances? 
Whether they can claim the refund for the TDS amount. 

Thanks & Regards; 

R. Agarwal. 

91-8886560111 
91-9830327249 

REPLY:1

Revise your TDS return by showing the correct amount paid and show twice 
the amount of TDS only. In this case you can request the other party to 
adjust the refund. 

If it does not work, file correct TDS return and adjust the excess TDS 
paid with some other TDS payment during the year. 

If the same is not possible refer Sec 200A and claim for the refund. 

Regards, 
Pankaj Jhawar 
Magma Fincorp Limited 

REPLY:2

In my opinion, the TDS deducted and deposited on the second payment can be adjusted against the TDS deductable from his future bill, if any and TDS certificate issued accordingly. 

For this purpose, the adjustment should be done in the same financial year. 

With warm regards, 

CS. K. Krishnamoorthy, 
Bangalore 
9980744334 

REPLY:3

Dear Mr. Agarwal,

TDS deducted and deposited can not be claimed as refund by the deductor. The deductee can only claim the TDS as tax paid against its tax liability.

As the party has agreed to refund the amount paid twice net of TDS, you should try to convince him that the amount of TDS has already been deposited in his account and the benefit of that TDS can be claimed by him only. Provide him TDS Certificate against the sum deposited and get the refund of TDS amount also from the Party. 

Thanks

O.P.Gupta
DGM (F&A)
MBL Infrastructures Ltd.
23A, N.S.Road, 3rd Floor,
Kolkata - 700001
Cell: 9051111697

REPLY:1

Best Regards,
Pramod Dayal Rungta
M.Com.,LL.B.,AICWA.,DISA(ICAI).,FCA
Member EIRC ICAI (2010-12)

P.D.Rungta & Co.
Chartered Accountants

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[Sachin udaypuria]

Dear  friend,

 

In my opinion, TDS deposited is only against a section and not in the name of any deductee. So the same can be adjusted against the future TDS deductions of the same year for any other deductee under the same section.

 

Surely one wise advice by some of the learned friends here is to persued the deductee that he can claim the TDS amount and adjust it in his bill only. This is the best option but it is not available always, so the option given above works in that case.

 

Thanks & Regards

 

SACHIN UDAYPURIA, FCA, DISA(ICAI) 
M/S. UDAYPURIA & ASSOCIATES
CHARTERED ACCOUNTANTS
BISWANATH LANE, BALU BAZAR,
CUTTACK-753002. ORISSA.
PH: (0671) 2368631(O) 3290935(R)
CELL : 93381-12048

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From: P.D.RUNGTA <pdru...@gmail.com>
To: forum4ca <foru...@googlegroups.com>
Sent: Fri, 8 April, 2011 9:01:56 AM
Subject: [PDRUNGTA] Q & A:TDS paid on same bill twice

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[P.D.RUNGTA]

Query: TDS paid on same bill twice
Dear All,

One of my clients has paid for same bill to some party twice from two of
his group companies and deducted the TDS twice and also deposited the
same. Now they have got to know that, the bill has been paid twice. They
communicated with the party, the party is agreed to refund the one bill
amount less the TDS on it. So now can anyone suggest me that what will be
the appropriate treatment on these circumstances?
Whether they can claim the refund for the TDS amount.

Thanks & Regards;

R. Agarwal.

91-8886560111
91-9830327249

Reply:1
Dear CA Sachin Udaypuria

While filing the Quarterly Return, deductee's details including PAN no
will have to be mentioned so that deductee can view online Form 26AS
about TDS details. So if return is not filed , deductor can adjust TDS
from one head to other head and necessary accounting entry can be
passed.

If return is once filed one practical approach is that deductee can be
requested to accept excess TDS amount agaist TDS certifcate issued
for the excess amount. . Otherwise TDS return can be revised by the
deductor.

Regards

CA Asit Kumar Mondal
Gujarat, Anand

Reply:2

To my mind if there is a continual relationship the excess deduction can always be adjusted in the future against further payments.If there is no future involvement deductee can claim refund in his return against excess prepaid tax credit.
regards
kalidas