What is the rate of interest on non collection of tcs

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Querist : Anonymous

Querist : Anonymous (Querist)

22 September 2014 I m confused a bit, interest on TDS on non collection is 1% or 1.5% per month from the date on which Invoice of TCS was raised to the date on which TCS deposition. In Fy 12-13 TCS wasn't collected from the parties that'why company is depositing the TCS out of own fund......

i,e TCS was to be collected on 26.05.2012 but didn't & depostion as on today..

CA vandana goyal

CA vandana goyal (Expert)
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22 September 2014 interest on TCS on non collection is 1.5%

Querist : Anonymous

Querist : Anonymous (Querist)

22 September 2014 Mr. Goyal, Is it from the date of collection to the day of deposition, suppose I didn't collect TCS as scrap invoice raise on 20.04.2012 & deposit it today. It means 30 month of interest @ 1.5% will be calculated...What about other penalities u/s 271CA. which mention a sum equal to amount to be collected on invoice will be imposed on Seller....

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CA vandana goyal

CA vandana goyal (Expert)
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22 September 2014 Penalty for failure to collect tax at source. 271CA. (1) If any person fails to collect the whole or any part of the tax as required by or under the provisions of Chapter XVII-BB, then, such person shall be liable to pay, by way of penalty, a sum equal to the amount of tax which such person failed to collect as aforesaid. (2) Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner Also it is advisable to pay TCS amount from your own pocket right nw and try to collect from the buyer in future.

CA vandana goyal

CA vandana goyal (Expert)
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22 September 2014 and its MS.goyal not mr. goyal

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 September 2014 Vandana as per section 206(7) the interest rate is 1% pm. can you please confirm?

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2014 Ms Goyal, make a change in ur record as Nikhil is correct, interest on non collection is 1% per month or part of the month u/s 206C from the date of collection to the date of payment.

In U/S 201(1A), It is 1% from the date of deductible of TDS to the date of deducted.

1.5% from the date of deducted of TDS to the date of actually paid to Govt.

One more which I want to know from both of you, whether I have to file TCS return, if employer deposits all amount of TCS at his/her end or not & if employer collect TCS amount from the purchaser in future what would be done in that case?