Regarding tds on contractor

Page no : 2

CMA Poornima Madhava (CMA) (13112 Points)
Replied 30 June 2016

No penalty. Interest @ 15% pa but if PY turnover is <=60 lacs, then @ 12% pa

Upgrade to CAclubindia Pro. Subscribe Now!

Sahil (NA) (159 Points)
Replied 30 June 2016

on which amt??? Service tax or taxable amt

CMA Poornima Madhava (CMA) (13112 Points)
Replied 30 June 2016

Of course on Service Tax. Interest is paid on ST and ST is paid on taxable service. Interest is applicable on delayed payment of ST which is due to govt. Hope you have understood.

Sahil (NA) (159 Points)
Replied 30 June 2016

yeah thankyou so much madam. But what about tds??? If we are filing a declaration for nil tds return, then what would we be the case for Penalty for filing tds return?? As you have told earlier that no penalty if original tds return is filed????

CMA Poornima Madhava (CMA) (13112 Points)
Replied 30 June 2016

Even if you have filed NIL 26Q within the time limit, there is no late fee for revising the return.

Upgrade to CAclubindia Pro. Subscribe Now!

Sahil (NA) (159 Points)
Replied 30 June 2016

okk thankyou so much again for solving my query.

subhash kumar jha (PROFESSION) (445 Points)
Replied 30 June 2016

If u will file TDS return now u need to deduct TDS @ 1 % or 20 % as the case may be. and u will be liable to pay interest @ 1.5 % and late fees @ 200 per days.

Dont do this a lot amount is minor show it as two three expenses , its ok.

Purnima G is correct as monetary limit under your case is Rs,75000.

subhash kumar jha (PROFESSION) (445 Points)
Replied 30 June 2016

in works contract service there is valuation rule where only 40 % or 70 % of total value of service shall be taxable and thereafter RCM @ 50%.

So finaly rate will be 2.9 % or 5.075 % for original work or other work

CMA Poornima Madhava (CMA) (13112 Points)
Replied 30 June 2016

@ Subhash: That is applicable where service portion cannot be determined. But here, service element is separately known. So can he still charge ST at composite rate?