Delay in TDS payment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2011 Dear Sir/ Madam,
I had submitted a challan of TDS in Bank well on due date i.e 7th of next month.

But due to server problem with the bank, the bank had processed the payment on 08th of that month.

Can I defend myself by saying that due to server problem of bank there was delay in TDS payment whereas I had deposited well on due date, or whether i have to pay interest for 1 day.

Thanks in advance

CA Harish Suwalka

CA Harish Suwalka (Expert)
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16 June 2011 usually bank will not take responsibility for such failures, and as the bank is only a mediator and tds should be deposited in Govt account on time is duty of the assesse

Interest should be paid 1.5% of amount, as interest is chargeable per month or part thereof
Sec 201(1A)
"thanks anuj Sir"

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 June 2011 Interest for delayed remittance of TDS is 1.5% per month or part of a month.

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CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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16 June 2011 There has been a change in Central Govt. rules ,according to which the funds shall be needed to be in Govt's account by 7th.

Meaning that just depositing the cheque on 7th and the clearing of which is done after 2 days then you are still liable to pay interest @ 1.5% .

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 June 2011 Anuj ji

As per Central Government Account (Receipts and Payments) Rules 1983 the date of payment of government dues tendered in form of cheque/draft shall be the date on which it was cleared and entered in the receipt scroll.

CBDT CIRCULAR 261 DATED 8/8/1979 is framed against the above rules meaning thereby date of tendering will be considered as date of payment if the cheque is honoured.

Hence 2nd para of your observation needs reconsideration.