Interest on late tax deduction

This query is : Resolved

Haider Naqvi (Querist)
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28 October 2014 Sir,
on 28Oct2014 I received a bill a sum of Rs:- 25816 including service tax which is dated on 30Aug2013. TDS would be deducted u/s 194J. I want to know for how many months of interest would be charged on this bill ? would tds be deducted including service tax value ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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28 October 2014 if you have received the bill in October itself, then no interest is to be charged. just deducted the TDS now and deposit the same with govt on or before 7 November 2014. TDS is not to be deducted on the service tax amount.

Haider Naqvi

Haider Naqvi (Querist)
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29 October 2014 Mr. Nikhil Sir, Bill date is 30Aug2013, and bill received is on 28oct2014 & payment of bill is made 28oct2014. Don't you think that TDS should have been deducted on bill date which received after 14 months that's why I am charging interest on late tds deduction.As I know tds is deducted on bill date & payment date whichever is earlier, Bill date is 30Aut2013. Plz remove my confusion.

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 October 2014 TDS is deducted on earlier of payment or credit to the party in books of accounts. if the bill was never received by the entity, the chances of the same being booked in accounts are less (unless provision for the same was created on 31 March).