A company has not deducted any tax during first two quarters and has not filed TDS return. Actually there are certain payment on which company failed to deduct tax. They have deducted with interest in the 3rd quarter. Will penalty u/s 234E for the first two quarters?
26 December 2013
Sec 234E is having reference of Sec 200(3) & Sec 206C(3). Sec 200(3) & Sec 206C(3)talk abount duty of person deducting the tax or collecting the tax to submit the statement ie filing of TDS return on due quarterly basis so that deductee would get TDS credit on time. When a person fails to deduct the deductible TDS then Sec 201(1A)ie interest and Sec 271C ie penalty get attracted. Therefore where TDS is deductible but not deducted then Sec 234E is not attracted
Iam of opinion that 234E can be attracted on situation mentioned by me. On going through the first two links , they are of the opinion that 234E will not be attracted.
15 January 2014
The constitutional validity of 234E has been challanged in the kerala high court in case of . . Narath mapila LP school vs UOI . . and vide interim order dated 18.12.2013 the high court has admitted the petition and granted a stay of proceedings for a period of 2 months
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