Tds notice

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tanisha (Querist)
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16 September 2013 if a company has not deposited the TDS for the FY 2012-13 till date then what are the consequences of failure.
Kindly explain the every aspect and penalties of this faliure and also suggest the remedies for the same.

plz help in this regard....

CA Pallav Singhania

CA Pallav Singhania (Expert)
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16 September 2013 Non deduction, late deduction and late deposit of TDS may lead you to face following consequences:

Interest on late deduction /deposit of Tax at source.

Dis-allowance of Expenses, on which tax has not been deducted /deposited u/s 40(a)(ia)

Penalty and prosecution.(271C and 276B)

I. Interest on late deduction and delayed deposit of TDS

As per income-tax , interest is payable under the following two circumstances:

Tax is not deducted , when it was deductible

Tax once deducted, is not paid on or before due date

Rate of interest

From the date when TDS was deductible till date of actual deduction,rate of interest is 1% p.m.

For delayed deposit, from date of deduction till actual date of payment, rate of interest is 1.5% p.m

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