Shweta Garg (CA FINAL Executive(Payables)) (147 Points)
04 July 2010Hi All,
need some help. the case goes like this:
tds on rent of Rs. 140000 for april not dedctd. on 6-5-2010 tds was dedctd for april and may. but deposited only for one month i.e. only Rs. 14000. on 8-6-2010 tds was dedctd for june. on the same day, tds was deposited Rs.28000.
plz tell me with section what rate of interest will be applicable on late deduction and late payment of tds, if any.
if suppose, i do some accounting treatment to avoid interest, will it be correct or not?
CA. Abhishek K. Pandey
(Manager (Advance))
(901 Points)
Replied 04 July 2010
Interest on late payment of TDS @ 1% per month (u/s.201(1A) ).
What can you do to avoid interest? Booking of expense lately? Thats risky actually.
daya shankar singh
(CA ,CS)
(629 Points)
Replied 04 July 2010
TDS should be deducted at the time of credit or on the date of payment whichever is earlier. WHere u deduct tds but fail to deposit or fails to deduct tds, u shall consider as assessee in default and accordingly interest u/s 220 and penalty u/s 210 would be chargeable alongwith interest u/s 201
CA Mohit Kumar Dixit
(Chartered accountant)
(25 Points)
Replied 05 July 2010
Hi,
As per Finance Act, Interest Rate for TDS would be paid @ 1% pm or part of month from date of Credit not due date.
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