Wednesday 15 October 2014

Can Excess TDS Be Adjusted In Coming Months?


Whether excess TDS amount remitted by a company under sec.192 can be adjusted against the TDSamount payable under the same section in the coming month.?

Yes, you can do. Section 192(3) clearly provides that the deductorcan enhance ro reduce the amount of tax to be deducted for the purpose of adjusting any excess or deficiency in previous action of deduction of tax at source. The excerpts of the said provision is given below:
“(3) The person responsible for making the payment referred to in sub-section (1) or sub-section (1A)or sub-section (2) or sub-section (2A) or sub-section (2B) may, at the time of making any deduction, increase or reduce the amount to be deducted under this section for the purpose of adjusting any excess or deficiency arising out of any previous deduction or failure to deduct during the financial year.”
Therefore, you can do the said adjustment without any hesitation.

No comments:

HC upholds validity of provisions restricting ITC where supplies are taxed under RCM

  This Tax Alert summarizes a recent judgement of the Delhi High Court (HC) [1] dealing with the issue of denial of input tax credit (ITC) ...