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what are interest rates for late payment of TDS

Deepa (Accounts) (38 Points)

03 March 2008

what is the interest rate if due to insufficant funds we failed pay TDS ammount on time.

plz xplain me thorugh exmaple. if TDS amt which is pending is 20000/- then......

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46 Replies

M.Sriram Shenoy (CA Final) (814 Points)
Replied 03 March 2008

Assuming TDS amount is Rs.20000, then you will be liable to pay interest @ 1% per month (on the TDS amount) for every month of delay i-e from the date on which it is liable to be remitted till the date of actual remittance.So interest amount per month will be Rs.200 (Rs.20000*1% p.m.). Multiply this by number of months of delay.Your interest on delay payment of TDS is arrived at.

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Vijay (CA) (254 Points)
Replied 04 March 2008

Yes , sriram is corect

CA. Kirti S. Ganatra (Service) (1461 Points)
Replied 04 March 2008

1% p.m.

Deepa (Accounts) (38 Points)
Replied 05 March 2008

thanks Shriram , vijay , Kirti

(Guest)

I was scraching my head for this clarification as my client is unable to credit the TDS collected by him into the Bank before 31-3-2008 and what would be the interest/penalty. Deepa, your query has saved my face. Thanks. But the real thanks goes to Sriram, Vijay and Kirti.

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Harshit Jain (Profession) (22 Points)
Replied 08 April 2008

If i had deducted TDS on 13/12/2007 and deposited the same on 07/04/2008, that is, yesterday, tghen how will the TDS be calculated.

I mean would it be on a day to day basis or if on monthly basis, how much will i have to pay, 3 months or 4 months....Kinldy advice.

Deepa (Accounts) (38 Points)
Replied 08 April 2008

how can we know our TDS circle. what it is ? where it is written?

Bijal (Chartered Accountant) (20 Points)
Replied 04 June 2008

Dear Colleagues

I have done the contract with one Agency and that agency is doing booking of 5 to 6 hotels on behalf of us. we will give them certain % of total billing amount of hotels. so on what basis we have to deduct TDS and how much %

Kindly reply me ASAP

Regards

Bijal Shah

RAJASREE (Audit Assisstant) (27 Points)
Replied 24 June 2008

is there any penalty for late payment or non payment of tds?

(Guest)

Originally posted by :Deepa
"	what is the interest rate if due to insufficant funds we failed pay TDS ammount on time. plz xplain me thorugh exmaple. if TDS amt which is pending is 20000/- then......	"

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CA Nikhil Mittal (Manager (Audit)) (77 Points)
Replied 23 July 2008

Dear Bijal Shah,

You have to deduct tax as per the provision of section 194-C (commission) for the payment made to your agent who is booking hotels for you. Rate of TDS should be 10.3% on the amount paid or credited in his account.

And you have also deduct tax as per the provision os 194-I (Rent) for the payment made to hotels.

(Guest)

What will be the penality for the late payment of TDS?

padma akella (Accountant) (20 Points)
Replied 02 August 2008

What are Interest rates for the Late Payment of TDS on Salaries & Rents Please send me mail to calculate my office salries and rents for the month of May, June & July mOnths

(Guest)

Originally posted by :Guest
"	What are Interest rates for the Late Payment of TDS on Salaries & Rents Please send me mail to calculate my office salries and rents for the month of May, June & July mOnths	"