Re. section 201 (1a) interest - urgent

This query is : Resolved

Siva Kumar G (Querist)
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28 January 2015 Since the 195 section is amended vide CBDT Circular 2/2014 regarding deduction of Tax at source for payments to non-residents as time of credit or payment, whichever is earlier, One of our clients unaware of this deducted tax on 31.12.2014 (i.e the date of credit to party) but remitted the same only on 22.01.2015 (i.e the date of payment to non-resident.)

My doubt is whether Section 201 (1A) interest would be applicable for 1 month or 2 months?

Also please cite any court judgements on a similar case??

CA Anjana Grover

CA Anjana Grover (Expert)
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28 January 2015 As per section 201(1a) Interest on late deposit of TDS is calculated from the date of deduction to the date of deposit @ 1.5% per month.

So Interest would be applicable for 2 Months.

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