21 May 2010
can u tell me wat is due date for payment of tds for the month of march & wht is the interest chargeable for the month of march if not paid with in due date
21 May 2010
logic is that when you are crediting the party on last day of financial year then you did not have much time to book and pay the tds and make entries. so you get some more time till 31st may
21 May 2010
The logic is not as is expalined by praksah, it is that On the close of a FY while closing the accounts which are prepared on accrual basis, there may be various provisions required to be made or may various bills be submitted by venders etc. at a later dates for services provided during the FY for which the entity may not be aware. While closing books auditors may also ask for certain new entries to be booked on which TDS is required to be deposited. If the last date of TDS deposit in such cases is kept the the 7th day from the end of the month, will be a great hardship to the business. So to provide relief from such hardship, the tax law has provided in the statute itself that if the amount is credited on the last day of the year on which the accounts are drawn, in such case TDS deposit date would be 2 month from the last day of close of the year.
CAclubindia
