Tds on contractor

Prashanth (Assistance Accountant) (26 Points)

28 June 2016  

I have noticed that in June 2016 one invoice got paid to vendor ABC Electrical Company with 1% TDS. Actually this was a firm and we would have deducted TDS @ 2%. Please let me know whether we can remit balance 1% without interest or with interest

Payment date       : 01-Jun-2016

Accounting date   : 18-May-2016

TDS invoice amount : 50000

TDS deducted @ 1% : 500