E payment tax of clients through my sb a/c
kaidjohar
(Querist) 24 February 2012
This query is : Resolved
Hello sirs..
I want to pay clients all types of taxes through e payment from Savings A/c by collecting cheque or cash from clients..
Is any liabilites view point of inacome tax?
Shailesh Kr. Shah
(Expert) 24 February 2012
There is no liabilities of income tax.I also advised you to charge service charge on transaction and pay tax on service charge.
kaidjohar
(Querist) 24 February 2012
thank u sir..
Raj Kumar Makkad
(Expert) 24 February 2012
This highly risk-ful to pay income tax liability of your clients our of your saving bank account cheques.
As you shall receive cheques or DDs in your name and shall encash so it may be treated as your income which you shall have to clarify by making entries in various places so better to obtain cheques directly in the name of IT department instead of you.
A V Vishal
(Expert) 25 February 2012
You can render such service however it is safe to operate the transactions thru a current account
prabhakar singh
(Expert) 25 February 2012
YOU ARE ADVISED TO OPEN A CURRENT A/C FOR THE PURPOSE.YOU SHOULD CHARGE SERVICE TAX AND PAY IN GOVT.A/C AS PER LAW.
A V Vishal
(Expert) 25 February 2012
Sri Prabhakar ji can you please enlighten me on what services tax is required to be paid by the querist?
kaidjohar
(Querist) 27 February 2012
R/Vishal Sir
I think Prabhakarji want to say sevice charges instead of service tax..
Thanx..
C. P. CHUGH
(Expert) 28 February 2012
Agreed with the Expers. As a matter of fact the CBDT has issued a circular whereby it has been clarified that e-payment of tax can be made either from the account of the assessee or from any other account. Hence one can make e-payment from his account on behalf of others, but why one should render these services without any consideration. Therefore One must charge some money as service charges and report it as his income. At the same I would advise to excercise caution while making e-payment, because, any error in making such payment can cause you ir-repairable loss and no client would come to your rescue.
I have been doing the precisely same for the last two years.
