Rahim (Businessperson) (460 Points)
03 September 2014Hello professional freinds.
I know that 1.5% interest per month or part of the monthis charged for late payment of TDS. Kindly calculate the exact amount of interest on the below mentioned example:
The TDS amount is Rs 25,000 dated 21/07/2014, which needs to be deposited by 7th August 2014 but has not been deposited till today. How much interest amount be charged on this 25000 @ 1.5% if the TDS along with interest will be deposited by 4th Sept 2014?
I will be highly grateful for the help.
Sarvesh
(student)
(287 Points)
Replied 03 September 2014
Assuming dat d bill date is 21/07/2014, as in case of late payment of TDs, interest has 2 be calculated from the bill date & upto to d date of payment.
So in ur case i had assumed d bill date is 21/7/2014
Interest will be calculated as follows -
25000*1.5%*3months = Rs 1125/-
You can pay Rs 1125/- till 30/09/2014.
Rahim
(Businessperson)
(460 Points)
Replied 03 September 2014
@ sarvesh: When interest along with TDS will be paid on 4th Sept, wont interest be calculated on 2 months only?
25000*1.5%*2months=750?
Sambit Baraj
(Consulting Manager)
(272 Points)
Replied 03 September 2014
Rahim
(Businessperson)
(460 Points)
Replied 03 September 2014
The period of default starts from date of deducting TDS which is 21/07/2014 till the date of actual deposit which is 04/09/2014.
21/7/2014 to 20/08/2014= 1 month
21/08/2014 to 04/09/2014 = 1 month
So shouldn't interest be calculated only for 2 months? Kindly explain.
Chand
(Commercial Manager)
(22 Points)
Replied 03 September 2014
Sambit Baraj
(Consulting Manager)
(272 Points)
Replied 03 September 2014
Accounting Home Services
(Finance Executive )
(734 Points)
Replied 03 September 2014
MONTH ALWAYS CALCULATE AS PER CALENDER...
You have to deposit late deduction interest @ 1.5% per month or part of the month from the date of payment / credit to deductee till date of deduction.
Procedure for calculating Late Deduction:
| Amount Paid / Credited(Rs.) | TDS Deducted(Rs.) | Interest Calculation | ||||
|---|---|---|---|---|---|---|
| Date of Payment(dd-mmm-yyyy) | Due Date of Deduction(dd-mmm-yyyy) | Date of Deduction(dd-mmm-yyyy) | Period of Delay in Months | Interest on Late Deduction U/S 201 (1A)(Rs.)(Col 2 * Col 6 * 1%) | ||
| 100000.00 | 10000.00 | 3-Mar-2012 | 3-Mar-2012 | 4-Mar-2012 | 1 | 100.00 |
| Total | 100.00 | |||||
Correct Calculation
No. of months in Defaults=1 i.e., 3-Mar-2012 to 4-Mar-2012
10000*1.5%*1(Months) =100.00
Sarvesh
(student)
(287 Points)
Replied 03 September 2014
Bro part of the month is ignored while calculating Interest on late payment of TDS. Thats y i mentioned u can pay the said amount till 30/09/2014. Suppose u going to pay the TDS in nxt month , it vl be calculated for 4 months & so on.
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 03 September 2014
The interest will be calculated for 3 months-July, aug & sept.......
Sambit Baraj
(Consulting Manager)
(272 Points)
Replied 03 September 2014
Sambit Baraj
(Consulting Manager)
(272 Points)
Replied 03 September 2014
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