TDS/professional tax on Consultancy fees, Accounting - Auditing

[Yashwant Chakve]

Dear Sir / Madam,

 

I need your suggestion regarding the Tds deducted on Consultancy Service. I am proprietor of the small Clearing & forwarding firm.

In the assessment year 2012-13, I had raised the Bill of Rs. 3, 86,050/- to one of our manufacturer for Consulting Charges. They give me advance payment of Rs. 1, 00,000/ & rest kept due/balance 

for as per term decided once work complete. I deposited cheque. Unfortunately work not had done yet & in month of Nov 2012 they took file back from me & gave to other company for the same work.

I filed the IT & recd the refund also for assessment year 2012-13. Now, I have to return the payment of

1, 00,000/ which I recd as a advance. But customer is asking to refund TDS amount as well of Rs. 38,605/-

Please suggest, shall I return full amount 1, 00,000 + TDS 38,605 or only 1, 00,000.00

Posts / Replies

[Padma Balakrishnan]

TDS Deducted is as good as amount recd & hence u will have to treat it in the same way as the amt of Rs 1 lac actually recd.However how much to refund will have to be evaluated by you based on the contract terms.

Secondly whether u have shown 1 lac as income & paid the tax on it also to be considered.

CA Padma Balakrishnan