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TDS payment delay interest

Ankit (...) (74 Points)

07 October 2008

TDS payment has been delayed. Can ant1 plz tell wht is the interest to be paid and is it to be calculated on day wise basis or consider it as a month delay ?

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10 Replies

CA Pawan Goswami (CA) (2928 Points)
Replied 07 October 2008

When TDS is deposited late, Interest @ 1% per month is charged on it .Part of the month is considered as full monyh for this purpose.

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Ankit (...) (74 Points)
Replied 07 October 2008

eg:

Bill date 8th july

TDS payment made on 5 the sept

int for 8 july - 7 aug - 1 month

8 aug - 7 sept - 2 month

or whether to count as july, aug sept - 3 month

so whether int for 2m or 3m ??

Vidya (Student) (789 Points)
Replied 07 October 2008

interest is payable for 2 months (august and september)

Brijesh Upadhyay (Practicing Chartered Accountan) (31 Points)
Replied 07 October 2008

As per Sec.201(1a), One needs to calculate interest from the date of tax deductible to the date of payment of tax @ 1% for month or part of the month so in your case 2 months int. requires to be calculated

pankaj chandak (ca final student) (34 Points)
Replied 08 October 2008

Originally posted by :Brijesh Upadhyay
"	As per Sec.201(1a), One needs to calculate interest from the date of tax deductible to the date of payment of tax @ 1% for month or part of the month so in your case 2 months int. requires to be calculated	"

sir if bill is of date 2st july and tds paid on 6th of september then the time peroid is 2 months and 4 days............so we should take int. of 2 mths. or 3 mths.

contrary is the tds is paid on 1st of september will the answer be different..........

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(Guest)

Originally posted by :Ankit
"	TDS payment has been delayed. Can ant1 plz tell wht is the interest to be paid and is it to be calculated on day wise basis or consider it as a month delay ?	"

NIKUNJ RATHI (C.A) (56 Points)
Replied 08 October 2008

My dear friends,

If bill is passed on 5 th July, then the due date for deposition of the tds with the government is 7 th of August.

So, if you delay the deposition and pay after 7 th August , then interest @ 1 % per month has to be paid. And a part of the month is considered as a full month.

So, if you deposit tds on 13 th december , then tds has been delayed by 4 months and 7 days and interest for 5 months shall be paid on the same.

Nikunj Rathi

Anil Kumar Jain (B.Com, CA- Inter) (81 Points)
Replied 27 October 2010

Sir, I Have a small querry on late deposit of TDS. say a Private Limited Company credited Bill of Rs. 50000/- on 16 Th August, 2010 and deducted TDS on the same day @ 10% on Rs. 50000/- i.e. Rs. 5000/- under section 194 J, But Company want to deposit TDS on 28.10.10 , Please let me know how much Interest shall be deposited - amount , Rate of interest & period .

Shall highly be appreciated for your kind support.

Regards

Anil Jain

9312640067

akj9312640067 @ gmail.com