Tds penalty u/s 234e
This query is : Resolved
30 October 2014
We are getting notices from IT TDS department for paying penalty u/s 234E whether this amount is payable or not kindly give update about legal validity challenged in various High Courts about this section.
30 October 2014
leagal validity of 234E was challenged in many states highcourts,..
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high courts have given stay on these proceedings
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hence no need to pay 234E fee untill final judgement releases
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high courts have given stay on these proceedings
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hence no need to pay 234E fee untill final judgement releases
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30 October 2014
ganesh bhai,
its a very dicey matter to suggest that there is no need to pay 234E fees until final judgment...if you go through the stay orders, they have been specifically against the relevant TDS AO. no bar has been made on the 234E on blanket basis.
its a very dicey matter to suggest that there is no need to pay 234E fees until final judgment...if you go through the stay orders, they have been specifically against the relevant TDS AO. no bar has been made on the 234E on blanket basis.
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30 October 2014
www.caclubindia.com/experts/penalty-u-s-234e-1823439.asp
Check out from reply from above link.
Check out from reply from above link.
03 November 2014
Very nice explanations from Nikhilji, Ganeshji and Guptaji in various queries regarding 234E. Expert friends please convey is there any case filed in Supreme court regard this? Because many Government deductors filed returns now only from (possible) previous years. More are, in less aware of this ETDS. Matching of 24G amount is a big challenge for Government Deductors.More of them fear to file ETDS regarding huge penalty. So more types in this regard.
03 November 2014
nothing in Supreme court yet. things are pending at various high courts...
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03 November 2014
Wow what a quick reply. Is there any way to know the 24G BIN amount for government deductors. Because matching of them is very tedious.
09 February 2015
Mumbai High Court rules - 234E fees constitutionally Valid
Rashmikant Kundalia vs. UOI (Bombay High Court)
S. 234E: The late filing of TDS returns by the deductor causes inconvenience to everyone and s. 234E levies a fee to regularize the said late filing. The fee is not in the guise of a tax nor is it onerous. The levy is constitutionally valid
The late submission of TDS statements means the Department is burdened with extra work which is otherwise not required if the TDS statements were furnished within the prescribed time. This fee is for the payment of the additional burden forced upon the Department. A person deducting the tax (the deductor), is allowed to file his TDS statement beyond the prescribed time provided he pays the fee as prescribed under section 234E of the Act. In other words, the late filing of the TDS return/statements is regularised upon payment of the fee as set out in section 234E. This is nothing but a privilege and a special service to the deductor allowing him to file the TDS return/statements beyond the time prescribed by the Act and/or the Rules. We therefore cannot agree with the argument of the Petitioners that the fee that is sought to be collected under section 234E of the Act is really nothing but a collection in the guise of a tax
Rashmikant Kundalia vs. UOI (Bombay High Court)
S. 234E: The late filing of TDS returns by the deductor causes inconvenience to everyone and s. 234E levies a fee to regularize the said late filing. The fee is not in the guise of a tax nor is it onerous. The levy is constitutionally valid
The late submission of TDS statements means the Department is burdened with extra work which is otherwise not required if the TDS statements were furnished within the prescribed time. This fee is for the payment of the additional burden forced upon the Department. A person deducting the tax (the deductor), is allowed to file his TDS statement beyond the prescribed time provided he pays the fee as prescribed under section 234E of the Act. In other words, the late filing of the TDS return/statements is regularised upon payment of the fee as set out in section 234E. This is nothing but a privilege and a special service to the deductor allowing him to file the TDS return/statements beyond the time prescribed by the Act and/or the Rules. We therefore cannot agree with the argument of the Petitioners that the fee that is sought to be collected under section 234E of the Act is really nothing but a collection in the guise of a tax
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09 February 2015
Nikhilji thanks for the update in this 234E. But the Honorable Mumbai High court's this decision is very shocking to the TDS defaulters. Courts may kindly considered the situations of the Deductors and may postpone the default period or may fixed a consolidated penalty upon them to regularise the ETDS filing. Because the deductors were not used the TDS money with them, they pay the money to the government but only they failed to file the ETDS returns in time. That also on the grounds of the proper knowledge and unavailability of BIN and proper return preparing professionals. So Courts may consider these problems. Kindly update about appeals and other judgments in this regard.
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