this regards TDS paid on professional fees by hospital / nursing homes:
1st qtr - fees paid 10,000/- TDS not done
2nd qtr - fees paid 5,000/- - TDS not done
3rd qtr - fees to be paid is 20,000/-. Should the TDS deducted now be 2000/- or 3500/-?
would there be a interest penalty for this?
TDS to be deducted on full 35,000/-
Interest is likely to be payable.
HI....
TDS will be deducted on full amount (ie.35000/-) in this kind of cases it would be in the interest of entity to deducted TDS at first instance only without waiting for crossing monetary limit.
Tds will be dedcued on total 35000.00 however question of interest is not arised if you not know at the time of first payment that the threshold limit will be crossed in this financial year.
TDS liability will be Rs. 3,500/-.
Interest liability will not arise in this case since the first 2 payments made by the assessee were within the exemption limit. If Rs. 3,500/- is deducted in the month of December then it is payable to the Government on or before January 7th and if it is not paid then interest liability will arise @ 1.5% from the date of deduction till the date of payment.
TDS Liability Rs. 3500/-
No Interest will be payable if you make the payment on or before 7th Jan till 6 PM.
If you delay further more then interest @ 1.5% payable from the month of deduction to payment month.
CAclubindia
