CA Jaydeep Bhowal
(Service)
(163 Points)
Replied 04 January 2012
TDS deducted not paid or TDS not deducted and not paid within the due date is to be equally penalised as regards interest. Because from the Govt. point of view they didnot received any revenue in both the case.
So, Interest would be calculated from the deductible date to the date of payment at 1.5% pm or partthere of. And in this case Interest would be calucated for three month if deductibe in NOv and paid in January or for two months if paid in December.
I hope it is clear now.
DATE OF DEDUCTION - O1/11/2011
DATE OF DEPOSIT - SUPPOSE PAID TODAY 04/01/2012
DUE DATE OF DEPSIT- 07/12/2011
INTEREST ON LATE DEPOSIT - FROM 01/11/2011 - 04/01/2012 3MONTHS
IF TDS WAS DEPOSITED ON 08/12/2011 THEN INTEREST FOR 2 MONTHS.
SUPPOSE IN CASE DATE OF DEDUCTION IS 12 NOV 2011 INTEREST IS TO BE PAID FOR 1 MONTH ONLY.
IF DEPOSITED ON 04/01/2012 THEN INTEREST FOR 2 MONTHS.
Vineet Goyal
(Assistant Manager - Finance & Accounts)
(702 Points)
Replied 05 January 2012
I completely agree with Mr. CA Rajiv
deepak
(C.A & C.S Final)
(63 Points)
Replied 05 January 2012
For example:-
One party for which the T.D.S amount comes to Rs 2,000/-
Date when TDS was booked by the Party-8.11.2011
Due date of Payment of TDS-7.12.2011.
But he/she paid on 5.1.2012.
Ineterest will be charged from 7.12.2011 to 5.1.2012,which comes to 1 month.
Now reading the Section 201,it has been clearly mentioned that Interest will be paid on the amount from when the TDS was deductible till the date when TDS to be paid.
Here in the above case,The party booked the TDS on 8.11.2011 but the TDS need to be deductible and to be paid on 7.12.2011(which is the Due Date of payment of TDS).so the month wise calculation will start from 7.12.2011 till the date of Payment.
Members please comment on the given example.
Vineet Goyal
(Assistant Manager - Finance & Accounts)
(702 Points)
Replied 05 January 2012
Deepak, TDS is deductible on 8th Nov-11 not on 7th Dec-11. Therefore I do not agree to calculation done by you.
Vineet Goyal
(Assistant Manager - Finance & Accounts)
(702 Points)
Replied 05 January 2012
Jaya, Can you share your calculation on the basis of which you say it should be one month.
Vineet Goyal
(Assistant Manager - Finance & Accounts)
(702 Points)
Replied 05 January 2012
I would request you to go through sec 201 which says interest should be calculated from the date of deduction of TDS to the date on which it was deposited.
jaya pandey
(accountant)
(97 Points)
Replied 05 January 2012
Vineet Goyal
(Assistant Manager - Finance & Accounts)
(702 Points)
Replied 05 January 2012
Once you miss the due date, then 7th of the coming months does not matter. What all matters is you deposit the TDS ASAP to avoid any further interest.
pankaj chauhan
(chartered accountants)
(33 Points)
Replied 06 January 2012
Hi Deepak,
You have to pay interest for 1 month only. I advice to you not to pay interest because "interest ko koi ni pocchta"...tax pay kar do wo hi kaafi hai....
Vineet Goyal
(Assistant Manager - Finance & Accounts)
(702 Points)
Replied 07 January 2012
Please do not suggest wrong things. Now, IT dept. has started sending notices for payment of interest. Our co. has also received such notices. Now we will have to deposit the interest and revise the Return.
CA Siddhi
(PRACTICE)
(257 Points)
Replied 11 January 2012
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