Urgent tds 201 interest
This query is : Resolved
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
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
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
20 December 2011
Agree with experts
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.
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.
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.
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
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
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".
@ 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".
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
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
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.
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