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Tds on bymistakely paid to vendors

keval gandhi (Job in Ca firm) (69 Points)

25 May 2017

Dear All,

I have made the payment bymistakenly to vendor in the month of March 2017. Now i am adjusting bymistakely paid against Invoice raised by vendor in the month of May 2017.So my question is i have to pay tds in the month of March,2017 itself?

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2 Replies

Baljeet Singh (CA, B.Com (H)) (954 Points)
Replied 25 May 2017

Hi Keval,

This is case of TDS not deducted and not deposited.

Thus the actual deduction should have been in March but it is being deducted in May.

You have to pay interest at 1% per month for March, April, & May i.e. 1x3=3%; provided you deposited the TDS + interest in May itself.

If you pay the above TDS and Interest in June, the interest will be payable for 4 months. 1x4% = 4%.

Let me know if you still have doubts.

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CA Bhargav Nathwani (CA in Practice) (8307 Points)
Replied 25 May 2017

Originally posted by : Baljeet Singh
	Hi Keval, This is case of TDS not deducted and not deposited. Thus the actual deduction should have been in March but it is being deducted in May. You have to pay interest at 1% per month for March, April, & May i.e. 1x3=3%; provided you deposited the TDS + interest in May itself. If you pay the above TDS and Interest in June, the interest will be payable for 4 months. 1x4% = 4%. Let me know if you still have doubts.

Agree with above answer..

TDS is dudctiable at the time of payment or entries in the books of accounts whichever is earlier except few cases like salaries. There is NO exception like payment by mistake. You have to suffer interest on TDS.