CPC (TDS) mandates closure of Short Payment Defaults using
Online Correction facility before allowing Conso Files
The
Centralized Processing Cell (TDS), in its endeavour to enforce TDS Compliance,
is shortly mandating closure of “Short Payment
defaults” in the quarterly TDS statements due to Unmatched Challans, before the
Conso files can be downloaded from TRACES for the relevant statements. Following are key information to be noted in
this regard:
CPC(TDS)
mandates to close the above default by tagging unconsumed challans, if
available in CPC(TDS) system, through online correction (without digital
signature).
In
case there is no available challan for consumption, the deductor is
required to first deposit the due tax in the bank and then the same challan
will be available for tagging in CPC(TDS) system after around 3-4 days of
deposit.
PC(TDS)
mandates to close the above default by Matching or Payment of challans.
The
user will not be able to download Conso file for the relevant TDS
statement until the above default is closed.
The
Online Correction facility of TRACES needs to be used for closure of the
Short Payment default.
User
will subsequently be able to download the Conso file for relevant period
only after the default is closed.
Why
the Short Payment needs to be paid:
- CPC (TDS) intends to enforce compliance towards payment of taxes to the Government.
- In accordance with provisions of section 201(1) of the Act, where any person, including the principal officer of a company, who is required to deduct any sum in accordance with the provisions of the Act; does not pay, or after so deducting fails to pay, the whole or any part of the tax, as required by or under this Act, then, such person, shall be deemed to be an assessee in default in respect of such tax.
- As per the provisions of section 220 of the Act,
- Any amount, specified as payable in a notice of demand shall be paid within thirty days of the service of the notice.
- If the amount specified in any notice of demand is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at one per cent for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) and ending with the day on which the amount is paid.
- If any person fails to deduct or pay the whole or any part of the tax, then, such person shall be liable to pay, by way of penalty, a sum equal to the amount of tax which such person failed to deduct or pay under Section 271C of the Act.
- Failure to pay tax to the credit of Central Government is punishable with fine as per the provisions of section 276B/ 276BB.
- Section 278A of the Act prescribes for punishment for second and subsequent offences, if any person has been convicted of an offence under section 276B.
What
Actions to be taken:
During submission of request for
Conso File, a message will be displayed, if there are Short Payment defaults
in the TDS statement and instructions will be provided to submit Online
Correction.
Details of defaults will be provided
during Online Correction process.
In case of insufficient challans, please
use Challan ITNS 281 to pay the demand or use any other Challan, which
has adequate balance available.
Submit an Online Correction using the functionality on TRACES to tag the challans
with deductee rows. Login to TRACES and navigate to “Defaults” tab
to locate “Request for Correction” from the drop-down list.
· Online Challan Corrections:
- A list of all Matched and Unmatched challans can be viewed by clicking the appropriate tab.
- Unmatched challans can be corrected and tagged to Deductee rows in the statement.
- The corrections in TDS statements can be raised even without Digital Signature.
- Correct KYC information needs to be submitted for the purpose of validation.
- All previous corrections pertaining to the statement should have been processed and the processing status can be verified from the Dashboard.
You are requested to take appropriate actions to avoid any
inconvenience in absence of Conso files for carrying out any other corrections
to your TDS statements.
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