Dear Professionals, we are a partnership firm paying rent to a Registered Society engaged in non profitable activity. They normally provide us a letter from the IT dept. exempting them from TDS to us.Normally this letter is obtained by them middle of the financial year but, providing exemption for the finanancial year. This year too expecting the same we paid the rents for April, May and June without deduting TDS. As they failed to provide us the letter we deduted TDS at 10% for the entire year in March 2016 and settled the rent. Our doubts are,
1.Are we liable for payment of interest on TDS not deducted for the payments made for April,May and June? If so at what rate?
2. Are we liable for penalty for non filing of TDS returns on quartely basis ? If yes at what rate?
3. What is the correct procedure to handle our situation?
CAclubindia
