Tax Deduction at source

[imrank]

Kamran,


Thanks for your reply. I was reading somewhere that if the witholder has not withheld the tax from the payment to the supplier, then the withholder/payer is personally liable to pay. If that's the case, then shouldn't the supplier assume that this will be dealt with and the appropriate tax should/would be paid by the payer? If the supplier also pays, then there might be double tax collected by the Government.

Also, if the AOP did not withhold as it was required not to, then would the supplier, assuming that it falls under FTR, be assessed on the rate applicable for the block, e.g. 3.5% for materials supplied?

Thanks,

Imran