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Advance tax adjustment with TDS

rits (Student CA Final ) (93 Points)

08 April 2023

For a private limited company TDS was deducted in feb 2023 and March 2023 which is expected to show in 26 As i may 2023.
No advance tax is paid by the company till date considering this TDS in books of accounts..
is this treatment correct or not?
should i pay advance tax now with interest or it can be adjusted with this tds at the time of filing return..
plz suggest answer

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8 Replies

NARENDRA (ACCOUNTS MANAGER) (1994 Points)
Replied 08 April 2023

TDS will definitely adjust ....but you should be concerned about the interest , the company hasn't paid advance tax yet .... the roll of interest will definitely come while filling the return .

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rits (Student CA Final ) (93 Points)
Replied 08 April 2023

Ohk. it means while filing return advance tax will set off with tds but i have to pay interest at that time..ohk sir.. thanks
next i want to ask whether this interest will be chargeable from 1 April 2023 to date of payment or anything else?

NARENDRA (ACCOUNTS MANAGER) (1994 Points)
Replied 08 April 2023

Companies have to pay advance tax in four instalments. You will have to calculate the total tax of payment & paid on 15Th Jun. ( 15%), 15Th Sep.(45%), 15th Dec.(75%) & 15th Mar.100% .

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DINESH KUMAR GOEL (INDIVIDUAL) (32 Points)
Replied 08 April 2023

Admittedly, the Company is required to pay the advance tax in 4 no installments during the financial year itself. But when TDS is deducted during the financial year and is more than the income tax liability of the Company, then no Advance tax is liable to be deposited, Further, no interest would be charged from the assessee.

From:

Dinesh Kumar Goel

B.com., LL.M.

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rits (Student CA Final ) (93 Points)
Replied 08 April 2023

Ohk.
the company incorporates in aug 2022 and first invoice issued in nov 2022..
whether the company is still liable to pay interest for june and September quarter??
or liable for December and march only?

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NARENDRA (ACCOUNTS MANAGER) (1994 Points)
Replied 08 April 2023

Naturally, if there is no transaction in jun & sep. means no tax liability will come. & then calculate dec. & march quarters tax. If there is not too much transaction on a very incorporate year of the company, & the tds are also credited with you, better to leave working on for time of finalisation .