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Urgent - tds late deducted and paid

21 February 2014

IF TDS THAT MUST BE DEDUCTED ON 1-4-13 IS DEDUCTED ON 1-4-14 AND DEPOSITED ON 1-4-14 THEN WHAT INTEREST SHOULD BE PAYABLE??

PLEASE REPLY

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5 Replies

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
Replied 21 February 2014

Interest should be payable @ 1% per month.

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ashish (CA) (79 Points)
Replied 21 February 2014

I disagree with the answer -
There are two defaults, liable for penalty.
a - for delay in dedcution - Penalty @ 1% per month / part of the month &
b - for delay in remittance of TDS - Penalty @ 1.5% per month / part of the month

The total interest will be
a - @ 1% - 13% &
b - @ 1.5 % - 19.5%

CA SUKSHAM ARORA (CA) (569 Points)
Replied 21 February 2014

BUT DON'T YOU THINK THAT THE SECOND INTERST IS APPLIED DUE TO DIFFERENCE IN DATE OF DEDUCTION & DATE OF PAYMENT.

I MEAN HERE DATE OF DEDUCTION & DATE OF PAYMENT ARE SAME .

ashish (CA) (79 Points)
Replied 21 February 2014

TDS is to be paid on the 7th of the subsequent month.
The fact that the deductor failed to deduct, does not absolve him from the liabiliy of paying it on the due date.
Here, there are 2 defaults, hence two penalties.

This is my understanding. Would really appreciate if someone else can clarify.