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Query regarding compounding fee(urgent)

TDS 380 views 1 replies

srikanth sasidhar

Chartered Accountant Cost Accountant

86 Points Joined April 2009

Dear Friends,

Please guide in the following issue...

We have received prosecution proceedings notice from the IT department(FY 2008-09) .They have given a summarised report of the details pertaining to FY 2008-09.In that report they have levied a compounding fee.Please let me know when this will be applicable and how it will be computed??Our case is we have deposited the TDS amounts relating to FY 2008-09 in the year of 11-12.

Srikanth

Replies (1)

Z

Tax Consultation (US and India)

2970 Points Joined September 2011

Refer to para 9

https://www.incometaxindiapr.gov.in/incometaxindiacr/contents/CBDTFiles/Instructions/CBDTLaws/HTMLFiles/sec279_5206_94.htm

Compounding fees will have to be paid, this is the last line of defence unless you can prove the proceeding wrong. Many such orders have been issued specially in Gujrat more so with respect to cases involving TDS.