QUERY REGARDING TDS DEDUCTION & INTEREST THEREUPON
IN THE MONTH OF NOV-09, ABC LTD HAD PAID PROFESSIONAL FEES OF RS.1,00,000/- WHICH WAS LIABLE FOR TDS DEDUCTION ON WHICH NO TDS WAS DEDUCTED OR PAID, THE SAID EXPENDITURE HAS BEEN DISALLOWED U/S 40(a) (ia) FOR THE F.Y.09-10.IN THE NEXT FINANCIAL YEAR ON THE AFORESAID PAYMENT ABC LTD DEDUCTED & PAID TDS AT THE RATE OF 10% (I.E RS.10,000/-) IN OCT-10.
OUR QUERY IS
1) ARE WE LIABLE TO PAY INTEREST ON TDS OF RS.10000/- PAID FOR THE PERIOD NOV-09 TO OCT-10?
IF YES, THEN WHAT IS THE RATE OF INTEREST APPLICABLE?
CAclubindia
