tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 August 2010 Hi,

I have a query on tds
I deducted tds for one party in aug,09 and i did not deposit till now that is july,2010
My query is
1.Wat is the interest payable now
2.do i need to revise the earlier return of that quarter
3.Do i attract any penalty

VINOD ARORA

VINOD ARORA (Expert)
Follow

03 August 2010 1. Interest @1% pm on the amount not so deposited
2. Yes
3. In case the same is deposited with ineterst at yor own, the penalty provisions are not initiated.

Message likes : 1 times

SANDEEP AGGARWAL

SANDEEP AGGARWAL (Expert)
Follow

03 August 2010 Interest is payable u/s 201 (1A) of |IT Act. and subject expenditure will be disallowed as an expenditure. Certainely penalty may also be imposed by AO.

Upgrade to CAclubindia Pro. Subscribe Now!

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

03 August 2010 1. Interest from august 09 - june 10 - 1% p. m. - 11%

from July 10 - August 10 - 1.5% p.m. - 3%

=11 + 3 = 14%

2. You will have to revise that quarter return.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

03 August 2010 Up to June -2010 the interest rate will be 1 % per month or part of the month and july-2010 onwards 1.50 % per month or part of the month

2.after payment you can correct the TDS statement

3. Penalty will not be there

Querist : Anonymous

Querist : Anonymous (Querist)

03 August 2010 dear vinod do u mean to say i need to revise Q2 return or all the returns say Q2,Q3,Q4
Please advise

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

03 August 2010 1) rate of Interest on late deposit 1% p.m. from aug 09 to june 09 and after that 1.5% p.mor for any part.
i.e. 11% till june +3% if you pay the amount in august,10.
total interest 14% on TDS Amount.

2) Yes return should be revised for 2nd quarter

3) Penalty under sec 221 can be levied subject to maxium amount of tax involved.

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

03 August 2010 Dear Vinodji w. e. f. 01.07.10 interest rate has been increased and is now 1.5% p. m. and not 1% p. m.

Kindly verify the same and revert.

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

03 August 2010 thanks a lot friends

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
Follow

03 August 2010 1. 1% per month for Aug,09 to June,10 = 11 months &
1.5 % for July,10
& consider today's date, 1.5 % for Aug,10

2. Yes

3.No penalty as you are going to deposit the TDS with applicable interest as in point no. 1.