I want to ask that how to calculate interest on late filing of TDS.
If I booked the bill on 31 March 2010 & deposit the TDS on 5thJune 2010,how many months will be counted for interest calculation. Pls suggest urgently
6 Replies
SUNNY
(STUDENT CS)
(377 Points)
Replied 05 June 2010
1 % on every month from 7th to 7th of the next month
u have to calulate 2 month interest 2% at due amount
SUNNY
(STUDENT CS)
(377 Points)
Replied 05 June 2010
if u booked bill on 31 st march then last date of tds deposit was 31 st may 2010
u have to calculate 1% interest on due amount
Akhil Gupta
(Manager F&A)
(856 Points)
Replied 05 June 2010
Interst under Section 201(1A) is 1% and is payable from the date on which such tax was deductible to the date on which such tax is actually paid.
However this provision is amended w.e.f. 01/07/2010. Under the amended version, interest will be payable as follows:
1% from the date on which such tax was deductible to the date on which such tax is actually deducted.
1.5% from the date on which such tax was actually deducted to the date on which such tax is actually paid.
According to my opinion, in your case the period of default is from 31/03/2010 to 05/06/2010, hence interest should be caculated for 3 month.
Refer para 142.2 of Direct Tax Ready Recknor by Dr. Vinod K Singhania.
varun gupta
(Senior Accounts Officer)
(89 Points)
Replied 06 June 2010
Ya Akhil is correct, pay interest for three months @ 1.5%.
Venkateswara Rao Sapare
(Accountant)
(1500 Points)
Replied 07 June 2010
Dear Friend,
It seems there are two issues in your query., if I am not wrong.
One is "calculate interest on late filing of TDS."
Do you mean 'Filing of TDS Returns'? If so, there is no such thing called 'Interest on late filing of TDS'.
Second point is "If I booked the bill on 31 March 2010 & deposit the TDS on 5thJune 2010,how many months will be counted for interest calculation. "
-
Here, in this case due date is 31.May.2010.
-
Prevailing Interest rate applicable is 1.5%.
- You need to pay interest for only ONE MONTH.
Akhil Gupta
(Manager F&A)
(856 Points)
Replied 07 June 2010
Respected Venkateswara Rao Sapre & Varun Gupta,
The proposed changes are effective from 01.07.2010. Therefor in my opinion Interest @ 1% is payable for 3 months (as per old provision).
Regds/ Akhil Gupta
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