Don't want to pay tds
Shamsul Arfeen
(Querist) 07 January 2015
This query is : Resolved
Dear all
we have just started a manpower consultancy, even not completed 1 yr.
To whom we are providing services,they paid us after deducting TDS(10%).
Exactly i don't wanted to pay anymore in the name of TDS to the govt.
We have just started the Company with very small amount of Capital.
we are sole proprietorship.
what should i take step plz guide??????
Anirudh
(Expert) 07 January 2015
The person /Company who makes payment to you has an obligation under the Income Tax Act to effect Tax Deduction at Source (TDS).
If you so feel that your company will not be required to pay Income Tax at the end of the year, because its income is within the exempted limit, and therefore you do not want any further TDS to be effected by anybody, then you have to make an application to the Income Tax Officer (TDS) concerned under Section 197 of the Income Tax Act, seeking exemption from deduction of Tax at Source or for deduction at lesser rate.
Guest
(Expert) 07 January 2015
Consult the CA Club Or your CA for a Practical and Valid advise
Rajendra K Goyal
(Expert) 07 January 2015
Why you do not want TDS to be deducted from your payments? It is obligation on the person effecting payment. If your income is less than the thresh hold limit of taxation, file return and claim refund.
Guest
(Expert) 07 January 2015
A disbursing authority can't ignore the statutory requirement of the IT Act/ Rules. It is compulsory for him to deduct TDS. If your company does not have taxable income, you can apply for refund to the assessing officer of his IT circle, as based on the certificate of deduction by the DDO, after close of the assessing year.
Dr J C Vashista
(Expert) 16 January 2015
TDS on payment of bill for employment of manpower is 2% and not 10%, recheck.
It is a legal liability cast upon payment making authority to deduct TDS and deposit in the government treasury.
