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Interest on TDS

TDS 511 views 4 replies

Kanthraju

Accountant

29 Points Joined September 2011

“Received an Advertising Bill on 15th April, 2011. Payment for the same made on 27th August, 2011, after deduction of TDS. TDS deducted from the party deposited without Interest on 5th September, 2011.

Is any Interest Due to the Department on this Payment ?”

Replies (4)

TRILOCHAN

SENIOR ACCOUNTANT

698 Points Joined May 2008

Ya, Interest is due for 5 months @ 1.5% per month

Mihir

Wealth Manager

5293 Points Joined December 2008

What happens if the TDS amount was deposited on the date of booking the expenses on 15th April 2011, and after a month, the bill amount is re-negotiated, and the TDS amount deposited is more because the bill amount has come down? Excess TDS paid ? What to do next ?