09 August 2010
Even after payment of TDS you come within the provision of penalty u/s 221 for late deposit of TDS. The maximum amount of penalty is the amount of TDS involved.
Interest paid is only meant to compensate the late payment, but that does not absolve you from the liability of penalty u/s 221 for offence of failure in paying TDS in time.
09 August 2010
Interest u/s 201(1A) is only compensatory in nature & not penal.
Interest under section 201(1A) not being penal in nature, the question of waiver of interest on grounds such as reasonable cause, bonafide belief, unintentional are irrelevant. G.M. Punjab Roadways vs. ITO (2009) 178 Taxman 112 (Chandigarh) (SMC)
10 September 2012
as said by you all,Interest is compensatory in nature and I also agree to it, Interest on late payment of TDS should be allowed as expenditure while computing total income. Agree ???
CAclubindia
