16 March 2008
The AO charged interest @12% p.a. for delay in deposit of TDS by one day to three days for full one month. But as per rule 119A (a) where interest is to be charged @ per annum basis then part of month is to be ignored. If delay in deposit of TDS is less than one month whether the AO is right in charging the interest for full month.If AO is correct then What is the remedy? Kindly reply urgently.
18 March 2008
If the interest rate is calculated on p.a. basis the rule 119A provides for the method of calculation and as per that part of the month is to be ignored then how AO is right in charging interest for full one month for the delay of 1/3 days. Kindly clarrify.