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Rate of interest on non deduction of tds f. y. 2009-10

Vikas Dighe (Tax Consultants) (49 Points)

03 November 2012

Dear Sir/Madam,

The employee not deducted TDS on Technical Services [Sec.194J] in F. Y. 2009-10. I want the slab of rate of Interest from F. Y. 2009-10 to F. Y. 2012-13.

Please Help me.

Vikas

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2 Replies

Maruthi (Tds Returns Preparer) (207 Points)
Replied 03 November 2012

Dear Vikas,

there are two types of Rate of Interest on Late Payment of TDS,they are

1. @ 12% p.a. on TDS amount (when the Deductor deduct the TDS and likes to pay the TDS (even Late Deduction, i.e. tds deduction and tds payment both are late), But as per Merantile system the TDS should be deducted the same day, and should be deposited 7th day of next month, when the Payment or credit made or likely to be credited whichever is earlier.So, Practically this issue will not arise.

2. @ 18% p.a. on TDS amount (when the Deductor deduct the TDS and likes to pay the TDS (when the Deduction date and TDS payment date is different), As per Merantile system the TDS should be deducted the same day, and should be deposited 7th day of next month, when the Payment or credit made or likely to be credited whichever is earlier.So, Practically We should consider this RATE OF INTEREST.

Regards