T.d.s

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Sunitha.V.S

Sunitha.V.S (Querist)
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18 May 2012 Sir,
As on 23-05-2011 , A amount of Rs.150000/- Paid as Architect Consultancy Fee, But forget to deduct T.D.S from the Payee. Can I Pay the T.D.S now? how much is the interest for the same? In my view Point 10% of 150000/-, ie, 15000/- & Interst 1.5% of T.d.S for each & every month of Delay , I.e:Rs.2700/-, Is it correct or not sir?

CA Piyush Chandanmal Rakhecha

CA Piyush Chandanmal Rakhecha (Expert)
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18 May 2012 Hello Sunitha,

Yes you can pay TDS @ 10% and Interest @1% for 13 months on Tax amount..,,

As you was forgot to deduct tax you are liable to pay simple interest of 1%.....

Interest @1.5% is leviable when you have dedcuted Tax on behalf of supplier and forgot to deposit to CG.

Relevant extract of Sec.201 of IT Act,

Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct the whole or any part of the tax or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest,—

(i) at one per cent for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted; and

(ii) at one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid,

and such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200.]

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