Considering Rent has been paid by the company to the landlord since Sept 2015 till date every month, and TAN number has been allotted to the company this month, still the company will be liable to deduct TDS since Sept 2015 and pay the said liability along with interest before 7th Dec 2015? Is there any way to avoid the penalty for non filing of TDS return for the quarter ended Sept 2015 as the TAN number itself was not applied till then?
7 Replies
CA Goutam Sharma
(Chartered Accountant in Practice)
(468 Points)
Replied 05 December 2015
Does the rent exceed the maximum limit ? and if it exceed then , yes , you need to deduct and pay tax with interest
CA Ayush Agarwal
(Practice)
(122 Points)
Replied 05 December 2015
Yes...the amount of rent is around 70000 per month..what about Sept quarter TDS return?
CA Goutam Sharma
(Chartered Accountant in Practice)
(468 Points)
Replied 05 December 2015
yes you need to deduct and pay
shivaji prasad bhimavarapu
(CHARTERED ACCOUNTANT)
(2391 Points)
Replied 06 December 2015
lets take it this way.. For sept , 70000 paid.- No TDS because of the limit of 180000/- p.a. For Oct, again Rs70K paid, - total 140k, below 180K- so No TDS for Oct also.. Here comes- Nov 2015 payment of 70 K rent. the aggregate , here exceeds the limit of 180K. So make TDS for all the three months here and pay TDS. File the quarterly return for III quarter with the same data. No delayed payment.
Nikhil Kaushik
(Fellow CA)
(85743 Points)
Replied 06 December 2015
| Originally posted by : shivaji prasad bhimavarapu | ||
 |
lets take it this way.. For sept , 70000 paid.- No TDS because of the limit of 180000/- p.a. For Oct, again Rs70K paid, - total 140k, below 180K- so No TDS for Oct also.. Here comes- Nov 2015 payment of 70 K rent. the aggregate , here exceeds the limit of 180K. So make TDS for all the three months here and pay TDS. File the quarterly return for III quarter with the same data. No delayed payment. |  |
before giving this advice, you should consider the impact of the first proviso to section 1894-I:
"Provided that no deduction shall be made under this section where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed one hundred and eighty thousand rupees :"
The lease deed/ rent agreement if covers the likely payment of rent in excess of Rs 1.8 lakhs, then TDS will be applicable in this case from Day 1.
Namit
(Accountant)
(52 Points)
Replied 06 December 2015
Agreed with @ Nikhil
TDS liability starts from the day the Company enters into Rent agreement since the company knows the Rent payable for the full year exceeds the limit of Rs. 1,80,000/-
You will have to deduct and pay tax in Q3 as suggested initially by @ efiler
Nikhil Kaushik
(Fellow CA)
(85743 Points)
Replied 06 December 2015
| Originally posted by : Namit | ||
|
Agreed with @ Nikhil TDS liability starts from the day the Company enters into Rent agreement since the company knows the Rent payable for the full year exceeds the limit of Rs. 1,80,000/- You will have to deduct and pay tax in Q3 as suggested initially by @ efiler |
|
well, the rent payment starts in september, the tax has to be paid from Q2
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