LAKSHMI NARAYAN B (CA Final Student) (59 Points)
06 August 2009Dear CA Club Members,
Due to Bank Strike on 6th and 7th August, we are unbale to make TDS payment. Is interest payable on such delayed payment. Please quote the relevant section or case law applicable in such situation.
Thanks & Regards
Lakshminarayan.B
shankar
(student)
(97 Points)
Replied 06 August 2009
If the banks are holiday on due dates then we have to pay the day before the holiday and remaining provisions are as follows.
If the person responsible for deducting or depositing the tax at source, does not pay or deposit the TDS then Interest u/s.201(1A) @ 12% p.a. from the date on which the tax was deductible to the date on which such tax is actually paid will be levied on the amount of such tax.
And now can understand very well
Penalty u/s.271C is leviable if the assessee fails to deduct the tax at source within the prescribed time. The penalty leviable is equal to the amount of tax the deductor failed to deduct.
PROSECUTION U/S.276B
If the deductor fails to deposit the tax deducted by him at source, he shall be punishable with rigorous imprisonment for a term from three months to seven years along with fine.
CA CS Amit Borade
(Chief Accountant)
(2828 Points)
Replied 06 August 2009
Shakar is Right. When ever there is Bank Strike Notice of Strike is published before strike so we have to deposit tax before strike.. otherwise Interest for late payment will be charged by IT Dep @ 12%.
LAKSHMI NARAYAN B
(CA Final Student)
(59 Points)
Replied 06 August 2009
Your are right, but we need to make e-payment, but the server is down
shankar
(student)
(97 Points)
Replied 06 August 2009
To avoid the penal provisions and auditor queries it is always better for pay the before the due date. Employer responsible for payment of TDS.
CA Guru M
(B.com, CA, CS)
(1552 Points)
Replied 06 August 2009
I agree with shankar execpt the following
As Per My Knowledge Interest payble u/s 201(1A) for delay in remittenance of TDS , is from the due date to the date of actual payment made & not from the date on which TDS is made.
shankar
(student)
(97 Points)
Replied 06 August 2009
But guru If u go through Sec 201 in that said that period of interest is : Date on which Tax was deductible to the date on which such tax is actually paid
Tax was deductible means that date on which credited or paid
Max Payne
(employed)
(2569 Points)
Replied 06 August 2009
does this mean if 7t h is sunday we have to deposit the day before?
Suresh M
(Financial Analyst)
(124 Points)
Replied 06 August 2009
The delay charges will be 2% till which period you are making it delay. Ex. If you made payout in 10th Aug'09 due to bank strike. The 2% Per month interest rate will apply for two months. Because, you have missed to make payment before 7th Aug and even if you pay at 10th Aug'09 which will be considered as before 7th of Sep'09.
Sandeep
(Chartered Accountant)
(60 Points)
Replied 06 August 2009
Dear friends,
I want to clarify the interest provision. The interest is charged @ 1% for every month or part of the month. That means, even if there is delay of one day, you need to pay interest @ 1%.
CA Kingsley
(Audit Manager)
(470 Points)
Replied 07 August 2009
what? if you don remit tds before due date, there is criminal liability? I will be the most happiest person if my dumb clients go to jail. I will use this to threaten them to follow the rules.
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