My client has paid Rs.15000.00 p.m. without deducting TDS, to a Security Service Agency towards security service bill for last 5 months.
Now, what will be the simpliest way to resolve the problem???
4 Replies
Mohan
(Audit Assisstant & Accounts Manager)
(489 Points)
Replied 13 June 2016
Tax can be deducted when threshold limit is crossed. However, it's better idea to deduct on monthly basis when you know you will criss the limit sooner or later in the year.
Ruchi
(CA)
(1410 Points)
Replied 13 June 2016
Since the payment is for last 5 months , it means that some of the payment would fall in last financial year and some in this year. For the last financial year if the total exceeds 30000 then you must deduct tds and make the payments now along with interest for late payment. Thereafter you will also have to revise your tds return for the last quarter.
For this year also , you should deduct tds for april and may and get it deposited along with interest.
CA Harshal Totla
(Chartered Accountant)
(2229 Points)
Replied 13 June 2016
As threshold limit is crossed in the first month itself you should have deducted tds timely. Now better course of action is deduct and deposit the tds along with interest u/s 201(1A) and prevent further consequences.
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