Delay in T.D.S.payment

This query is : Resolved

Nishant Soni (Querist)
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11 September 2008 A TDS amounting to Rs. 291 was deducted from the contractor and the company was liable to psy in May'07. However, it deposited the same in June'07, i.e. i month behind the schedule. How much will be the interest? If you could also provide the calculation.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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11 September 2008 SIMPLE INTEREST @1% PER MONTH IS TO BE PAYABLE BY THE COMPANY FOR THE DELAY.

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
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11 September 2008 CONSEQUENCES OF DEFAULT IN TDS:

Disallowance of Expenditure (U/S 40a (I) and (ia)

Assessee in default (U/S 201(1)

Charging of Interest U/S 201(1A) @ 12% p.a.

Penalty U/S 271C (Equal to the amount of tax not deducted or not paid)

Prosecution U/S 276B(Imprisonment not < 3 months, may extend to 7 years and fine)

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Vikas Mehta

Vikas Mehta (Expert)
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11 September 2008 Tax has to be deposited within one weak from the last date of month of deduction.

If the tax has not been deposited within the required date then 1% for each month of TDS amount has to be paid along with the TDS amt.