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Tds interest calculation

Dolly (Manager) (42 Points)

28 September 2017

Invoice date : 31/7/2017Amount ₹53204/-Invoice date : 31/8/2017Amount ₹21879/- Tds u/s 194 c @ 2 (payment to a company)Payment done on 20/9/2017 amounting to ₹39200/- (40000-2 tds) and balance is to be paid yet.So how much would be the interest on the tds amount if I deposit 800 on 06/10/2017?

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17 Replies

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 28 September 2017

First of above said bill amount including GST or not...?
If GST is exclude then you ll be deduct TDS for billed amount...

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RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 28 September 2017

Due date is 07/10... So, no need interest

CA Rashmi Gandhi (Chartered Accountant) (86461 Points)
Replied 28 September 2017

You have to pay interest as due date to deposit TDS is 07 Sept & 07 Oct.....

CA Rashmi Gandhi (Chartered Accountant) (86461 Points)
Replied 28 September 2017

Sorry date is 07 Aug & 07 Sept respectively

Dolly (Manager) (42 Points)
Replied 28 September 2017

So in short I will have to deduct tds at 2% for both the invoices and deposit the same with interest on or before 7/10/2017

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Dolly (Manager) (42 Points)
Replied 28 September 2017

It’s excluding gst.

CA Rashmi Gandhi (Chartered Accountant) (86461 Points)
Replied 28 September 2017

Yes you have to deposit with int @ 1.5% p.m.

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Dolly (Manager) (42 Points)
Replied 28 September 2017

Sir I guess interest will be charged as we need to consider the invoice date and not the payment date. Right?

CA Rashmi Gandhi (Chartered Accountant) (86461 Points)
Replied 28 September 2017

Under Section 201(1A) for late deposit of TDS after deduction, you have to pay interest. Interest is at the rate of 1.5% per month from the date at which TDS was deducted to the actual date of deposit. Note, that this is to be calculated on a monthly basis and not based on the number of days i.e. part of a month is considered as a full month.

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 28 September 2017

Dear Dolly.,
You can deduct between months any date. But, Payment ll be made on next month dates before 7th....

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RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 28 September 2017

Dolly.,
You are deduct TDS on payment of bills. Date of deduction on 20/09/2017... This deductible amounts due date next months 7th.. It's in 07/10/2017. But, You paid/deposit on 06/10/2017 then how is attract interest... No way for interest...
You ll ask my way of reply any experts or your CA. They ll confirm it...

CA Rashmi Gandhi (Chartered Accountant) (86461 Points)
Replied 28 September 2017

Agreed with Raja.....

Dont focused that you didnt pay such amt....as you don't pay amt so you don't have to pay ibt

Dolly (Manager) (42 Points)
Replied 29 September 2017

I am getting confused. My only query is that the date of deduction is the invoice date or date of making payment for the respective invoice? If it’s the invoice date then I have to pay interest. If its the date of payment then no interest.