Interest on TDS U/s 201(1A)

Hello Members,

I had a query with respect to Interest payable on TDs U/s 201(1A).

Please refer the following case:

a. X Ltd has been deducting TDS without applying any TDS Rates on provisional Basis. Suppose if the TDS deducted from 4 contractors comes to Rs. 1000 during the 1st quarter of the F.Y 2007-2008 (based upon the provisional payment) and the actual tds liability(based upon the Rates prevailing during that period) comes to Rs. 600/- Can the balance amount of Rs. 400/- be adjusted in future? In the above case, the company has taken the actual liability into consideration while filing the TDS returns. So the deductees will get the TDS credit to the extent of Rs. 600 only. So will the balance amount be refunded to us or will it be allowed to be adjusted with the any kind of future liability like TDS, interest etc.

b. Suppose if this TDS liability of Rs. 1000 has been paid after the due date and the interest amount leviable u/s 201(1A) comes to Rs. 150/-, will the excess tds amount of Rs. 400(as shownn above) be adjusted with the Interest payable U/s 201(1A)?

Thanks in advance. But please solve this query. I have posted this query last week but have got no reply till now. Its very urgent. Please help.