Urgent tds 201 interest

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BHUPENDER (Querist)
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19 December 2011 DEAR EXPERT AND CACLUB MEMBERS
DURING MY AUDIT I HAVE SEEN A BILL ON WHICH TDS IS DEDUCTIBLE FOR THE MONTH OF APRIL . BUT THE BILL WAS ENTERED ON LATER DATE IN THE MONTH OF SEPTEMBER . SO I WANT TO KNOW WHETHER THE ASSESSEE IS LIABLE TO PAY INTEREST U/S 201 FOR LATE DEDUCTION OF TDS AT 1%.
CLIENTS CONTENTION IS THAT NO LATE INTEREST WILL BE PAYABLE AS THE BILL IS ENTERED AT LATER STAGE IN THE BOOKS UPTO WHICH NO LIABILITY TO DEDUCT TDS HAS ARISEN AS NO ENTRY WAS MADE EITHER IN THE NAME OF PARTY OR ANY OTHER ACCOUNT

Aditya Maheshwari

Aditya Maheshwari (Expert)
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19 December 2011 TDS deductible at the earlier of payment or credit to the party. So treatment by company seems to be correct.

Guest

Guest (Expert)

19 December 2011 Right Mr. Aditya

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Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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20 December 2011 Agree with experts

Aditya Maheshwari

Aditya Maheshwari (Expert)
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20 December 2011 See this link both of you
https://www.caclubindia.com/experts/capital-gain-846075.asp

Do not reply to threads with messages like I agree thanks, etc etc. Instead use the thank user icon just below the profile detail of the user in each post.Try to add value with your each post.

Guest

Guest (Expert)

20 December 2011 Aditya Jee,

I agree you are absolutely right.

But as far as I am concerned, when I am writing "Agree with Expert" :

1. it is just because of the reason that it gives immense confidence to the person who is making query that the answer/ solution/ wayout/ advise/ reply given by one expert is reconfirmed by some other expert. Querist feels that when opinion of one expert is seconded by another expert, he becomes almost confident about the solution provided by the expert.

2. I write "Agree with Expert" only when I know that the answer provided by expert is 100% correct and leaves no room for correction or additional details to be shared i.e. the answer is correct and cent percent complete in itself.

3. Just once consider yourself in the shoes of Querist who is in dilemma, who is so confused about his problem etc. and when the same answer is given by more than one expert then who much he or she is relieved. Since the answers given by experts and quality of replies is limited to the extent of their exposure and experience in the matter and their perception and interpretation of statute.

I hope i am able to put forth my point of view to you with due respect to your expertise.

Kind Regards, Neha

Thanks.

BHUPENDER

BHUPENDER (Querist)
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20 December 2011 Thanks to all for their valuable replies
So I can conclude that any one can defer his lability of tds by not entering the bill in the books of accounts, then what is the use of penalty of 1% for late deduction and what would be cases of late deductions

Aditya Maheshwari

Aditya Maheshwari (Expert)
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20 December 2011 Late deductions would come into picture when an advance payment has been made and no TDS has been deducted or a case where expenses have been booked and full payment has been made without deducting TDS.

@ Neha: Do not want to stretch the discussion much but wish to say that you are free to reply in any query where you feel that my reply is incorrect. I would be the first person to accept my mistake. But request not to reply with agreed replies whereever possible. However in case where a complicated query has been raised you are free to answer the same by adding value to the reply but not be stating "AGREED".

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BHUPENDER

BHUPENDER (Querist)
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20 December 2011 Thanks
Please answer one more query
Tds not deducted at the time of payment of salary but at the last month only for
the whole year . is assessee liable to pay interest for late deduction

Aditya Maheshwari

Aditya Maheshwari (Expert)
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20 December 2011 TDS on salary can be deducted at any time during the year but before the year end or before the employee leaves.