Interest on non deduction of tds from vendor

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2011 Dear Sir,

I have deducted 2% tds from one of my vendors bill dated 01.01.2011, and have paid to the goverment and have also filed the TDS return on time.

Now I realise that the TDS to be dedcuted was @ 10% instead of 2 %.

I have now deducted the balance TDS amount on 20.09.2011 and have paid to govt.

What Amount of interest do I have to pay @ at what rate. How will be calculation be done.

Can I revise the Q-4 return ( 01.01.2011 to 31.03.2011)

Please guide.

Thanks in Advance

CA Prashant Shrivastava

CA Prashant Shrivastava (Expert)
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23 September 2011 You have to pay interest @ 1% p.m. or part of the month on the balance TDS of 8% from the date of default till the date of payment.

You can revise the TDS Return for the relevant period to incorporate the TDS challan paid after the filing of TDS Return.