refund of excess tds deposited

[Bijendar singh]

one of our client has deducted the tds u/s 194A on payment of intt to forest corporation.forest corporation is exempt from tds deduction. they want immediate refund of their tds instead of receiving form 16A and get refund afterwards filing their corporation return. I went to directorate commissionerate and to CIT also.show them section of refund of tds and circular claiming exemption from tds for corporation. they get involve in arguemnts instead of giving suggestion, instead they were unaware of this section. this is new type of problem of tds occuring in our jurisdiction.
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cicular ref no. 285,dated october 21, 1980

please suggest me regarding the practical applicability of this circular. also provide me relevant case laws or any guidance regarding this circular.

AI Summary

Forest Corporation Seeks Immediate TDS Refund Due to Exemption Under Section 194A; Tax Authorities Urged to Honor Circular A client deducted TDS under section 194A on payments to a forest corporation, which is exempt from TDS. The forest corporation seeks an immediate refund instead of waiting for Form 16A and filing a return. Despite presenting relevant sections and a circular (ref no. 285, dated October 21, 1980) to tax authorities, they were unhelpful. One response suggests that the department should honor the circular for refunds. Another advises that if the forest corporation provided an exemption certificate beforehand, they are entitled to a refund. Otherwise, the deduction was correct, and future issues could be avoided with proper documentation.