Lalit Nyati (Student) (487 Points)
07 August 2014Let say, Rent contract of Rs.50,000 PM ended on 31.5.14 and company had not deduct TDS on the same because of rent amount will not be exceed Rs. 1,80,000 i.e. limit for the current FY. Now company made a new contract with the same party for 2 more month of Rs.50,000 each month.
Now total payment for the FY is Rs. 2,00,000 and paid TDS on all 4 months.
My Q is that can company is lible to pay interest on late payment of deduct of TDS for April and May 2014?
CA and CMA Ravinder Singh
(CA and CMA)
(853 Points)
Replied 07 August 2014
no, not liable to pay interest..
Lalit Nyati
(Student)
(487 Points)
Replied 07 August 2014
CA and CMA Ravinder Singh
(CA and CMA)
(853 Points)
Replied 07 August 2014
you are liable to deduct tds only when aggregeate amount of rent paid exceeds of rs.180000.....in case, aggreageate amount of rent paid is rs. 180000 or below, you are not required to deduct tds.....
Mihir
(Wealth Manager)
(5293 Points)
Replied 07 August 2014
If the ITO becomes aware of this, they will make you pay the interest. To be on the safe side, you may pay the interest for late deduction of TDS.
CA Himansu Sekhar Pati
(CA Practice )
(21 Points)
Replied 08 August 2014
In My View
You have to pay interest because obligation of deduction arises at the time of payment or credit whichever is earlier. However the 1,80,000 limit prescribed as a explanation to the main section, so if the limit is crossed your obligation for deduction will be from the date of credit.
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