Late booking of tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2013 Mr A is providing professional services to Mr B, However the payment amount does not go beyond thresh hold limit in one payment.

However, Mr B does not book TDS when payment does not exceed.

TDS is booked when payment increases the thresh hold limit, and TDS is deducted on the whole amount starting on first day.

Does interest on late TDS arise?

CA RICHA BADALIA

CA RICHA BADALIA (Expert)
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16 April 2013 No liability arises.
As TDS liability arises only when the limit is crossed.

Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2013 My question is in the following manner.

on 16-APril Professional fees is paid of Rs.20000. Here TDS is not BOOKED.

However on 16-May professional fees is paid of Rs.60000, here TDS is credited with 8000 (20000*10% and 60000*10%)

Does interest arise on late booking of TDS oF 16-April?

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CA Prashant Shrivastava

CA Prashant Shrivastava (Expert)
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16 April 2013 You have booked TDS correctly in May month. TDS liability arise in the month of May only. If you have deposited Rs. 8000/- within 7th June there will be no penalty else you have to pay interest @ 1.5% p.m. upto the date of deposit.