10 July 2011
A pays commission to B. TDS limit u/s 194H not crossed upto June. After paying commission for month of July, it crosses the 5000 limit. Due to unawareness of TDS deduction, A did not deduct TDS and paid B in full. Later on he realized this mistake that he has not deducted TDS, but the problem is that after the month of July there will be no more transactions/business between A and B. Now how to settle this TDS liability?
10 July 2011
Calculate the TDS and debit B a/c. You have to realise this money from B at a later stage otherwise if he is not paying you have to write it off.
12 July 2011
I agree with the expert but while remiting the amount to government account it should be with interest of 1.5 % per month up to amount debited to account of B.
CAclubindia
