Calculation Of Interest On Late Payment Of T.D.S. ?

Nagaraju Pogula (Partner) (175 Points)
Replied 04 February 2008

Hi, First find the no of months for each transaction. and calculate 1% for each month. Aggregately it will be 12%.

Sanjivkumar Shah (Account Manager) (286 Points)
Replied 04 February 2008

Hi Nagarajuji, Can i get format for calculation of this in excel sheet please Sir? Regards Sanjivkumar Shah

Nagaraju Pogula (Partner) (175 Points)
Replied 04 February 2008

Follow this...

1)Find out the TDs for each transaction to be paid. 2) Find out the due date to be paid ( it will be 7th of following month) if not paid with in the seventh consider its also one month.
3) if example 10 months has come from the due date then interest rate is 10%. Directly u can calculate. It means aggregately it should not cross 12% PA.

Example
TDS 10000
No of months 10 (late payment months)
Interest rate is 10%

then tds interest will (10000*10/100)=1000

(Guest)

what is the rate of interest on late payment of TDS

(Guest)

what is the rate of interest on late payment of TDS

Vinoth Kumar. P (Finance) (73 Points)
Replied 17 June 2008

Hi suppose if i have made a journal entry for deduction in the month of April 07 and i have not paid till June 2008 what will be the impact. Even in that case also the Interest rate should not exceed 12%.

Pls clarify

Ramkrishna (Accountant) (325 Points)
Replied 17 June 2008

hI........

COUNT THE MONTH OF DELAY FROM THE BILL / INVOCIE DATE TILL PAYMENT DAY....

SUPPOSE FOR UR IST BILL...... I.E. 7TH OF APRIL, IF YOU DEPOSIT THE TDS IN 18 TH JUNE .THEN FROM 7 TH APRIL -7 MAY - 1 MONTH & 8 MAY TO 7 JUNE - 2 MONTH AND FROM 8TH JUNE TO 18 TH JUNE AGAIN 1 MONTH .......SO TOTAL 3 MONTH DELAY.......... REM...NO FRACTION OF MONTH IS FOLLOWED...

HOPE THIS MIGHT HELP U.

THANKS

Vinoth Kumar. P (Finance) (73 Points)
Replied 17 June 2008

Hi ramakrishna

It is not from April 07 to June 07. It is from April 2007 to June 2008.

whether interest will be for 15 months or 12 months.

Sumit (CA Practice ) (675 Points)
Replied 17 June 2008

Hi Vinoth

Interest @ 12% per annum or 1% per month is charged in case of late deposition of TDS.

So you can easily calculate it for any number of months.

from April 07 to June 2008 : Interest will be @ 1% p.m. for 14 months (as you are required to deposit the TDS by 7th of May 07 so interest is calculated not from the date of deduction of TDS but from the next date of default) or you can say that the interest is 14% for the whole period.

Regards

Sumit Aggarwal

9971444888

(Guest)

Dear vinoth kumar

I know that he has not depsoited till now...... but i was correcting the method for period calculation as provided by MR. Nagraju

.... Reagrding the issue of rate of interest , it is no where return that intt. will be payable only upto 12% ...u read the section 201[(1A) 42Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct 43[the whole or any part of the tax] or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest at 44[one per cent for every month or part of a month] on the amount of such tax from the date on which such tax was deductible to the date on which such tax is actually paid [and such interest shall be paid before furnishing the quarterly statement for each quarter in accordance with the provisions of sub-section (3) of section 200].]

I have masharba's ready recknor where he has written that formula for intt. calculation = 12% pa. x amount of such tax x " specified period, from the date on which such tax was deductible to the adte on whichsuch tax is actually paid "

Only u see that the intt. will not be higher than the actual TDS amount.

Thanks

(Guest)

Dear Sir

Pls guide me to Calculate interest for Delayed payment of TDS , i have deducted tds on each day of any month and depositing in 8 th of next month in this case whether interest will be for 2 month or 1 month

PLS Help with reference of Income tax act

GAYANAND JHA

(Guest)

Originally posted by :Guest
"	Dear Sir Pls guide me to Calculate interest for Delayed payment of TDS , i have deducted tds on each day of any month and depositing in 8 th of next month in this case whether interest will be for 2 month or 1 month PLS Help with reference of Income tax act GAYANAND JHA	"

Vishal (Account Assistant) (45 Points)
Replied 28 July 2008

Is the rate of Interest is different for TDS on Provision that is on 31st March

(Guest)

I have deducted TDS on Contractor for a Transporter @ 2.06% on Rs. 275800.00 amounting Rs, 5681.00 in September 2007, but not paid the same, can u plz tell me the interest rate for late payment