Delay in deposit of tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 November 2012 Hi,
Tax was deducted on 31st October 2012 for payment made to vendor on the same date i.e. 31st Oct.12, but due to some reason it was not deposited on 7th November 2012.
Date of deposit was 10th November 2012.
Should interest @1.5% for 2 months be paid

CA Sourabh Goenka

CA Sourabh Goenka (Expert)
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16 November 2012 interest for one month should be deposited. As per rule interest for late deposition of tds is from the date when tds deducted to date on which tds deposited. It is calculated on day to day basis i.e. in your case till 30th nov. it is only one month.

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CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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16 November 2012 Yes for 2 months. 1.5% for month per month or part of the month, As the section says that interest should be paid from the date of actual deduction ( Not the statutory due date of payment) to the date of actual payment.

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CA Sourabh Goenka

CA Sourabh Goenka (Expert)
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16 November 2012 dileep ji it is calculated part of month but not in exact ways that you are saying. part of month will be calculated on day to day basis i.e. in this case 2nd month will be start from 1st of dec. in this case.

for example if tds deducted on 16th of oct. then 2nd month will start from 16th of nov. not from 1st of nov.

It's confirm and no discussion requird.

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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17 November 2012 Dear sourabh, section says EVERY MONTH or part of month.

However still some confusion is there , one can go beneficial way.