TDS query - 276b

TDS query - 276b

I have received notice u/s - 276B for late TDS payment for FY -2016-17 , 6 months ago.

I had submitted all my supporting doc to AO mentioning that for my foreign payments no need to deduct TDS under DTAA . I have TRC also. But sensing complexity of International Taxation ,to avoid any uncomfortable situation may arise in future I have paid TDS with proper Interest in same Financial Year. ( 27Q form ). I have also provided supporting documents which says that No need to deducts TDS for my foreign payments.

But AO was not convinced and TODAY i received another letter from CIT for Hearing.


I want to know the process - Looks like CIT also will not be convinced.
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How I will know decision of CIT ?
When I can apply for "COMPOUNDING OF OFFENSE" - after or before prosecution ?
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Any help on this will be great.

Thank you

Asked 5 years ago in Income Tax

What is the order issued by AO?

Prosecution is a very serious punishment and it's applied in a very rare case.

276B is applicable only if you have failed to pay the amount to the credit of government. But since you have paid the TDS amount to government even before receiving the notice I don't think they will start prosecution proceedings.

Have you filed appeal before CIT (A)?

Why has CIT issued you notice? Is it CIT or CIT (A).

Just go with all your proof that you were not at all required to deduct TDS but then also you have deducted the TDS and paid it with interest. Was there any late fees liability on you?

You will get CIT (A) order.

If you are not sure about your proof then you should get a local CA who has good appeal related practice.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo

CA, Jaipur

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Hi,

- Please share the order of AO and notice of CIT on [deleted]

- Prosecution is the last step by the department. If you had paid TDS along with the interest inspite of you being not liable to deduct it then produce all papers again in front of CIT.

- Compounding @3% interest per month alongwith compounding charges is payable if you pot for it before prosecution.

Vivek Kumar Arora

CA, Delhi

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Hi,

Did AO pass any order? If AO/ CIT is not convinced, he will pass an order stating I am assuming you must had received show cause notice.

Once order is passed, you can appeal against the order.

Lakshita Bhandari

CA, Mumbai

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Dear Sir,

Hope you are doing well !!

Please share the copy of order.

Prosecution is very rare phenomenon and not a regular thing.

Interest @ 3% per month along with the applicable compounding charges before prosecution.

Payal Chhajed

CA, Mumbai

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Hi,

Can you share the set of your documents where in we can analyse as to why the AO is rejecting or if there is any other thing which can be used to defend the case !

Thanks

Damini

Damini Agarwal

CA, Bangalore

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It seems you are missing out on some facts.

As far as the provision of law is concerned, no Oficer can proceed adversely unless an opportunity is given to tax payer for hearing his facts and legal submission.

Since you have paid the taxes with interest , the questions of further prosecution does not arise

When the officer does not want to accept your arguments he has to give a written order and reasons of disagreement. You must go and visit the officer alone or with your CA. Also, once officer passes and adverse order you can make further appeal.