Interest on tds late payment

This query is : Resolved

Lokesh Bazaj (Querist)
Follow

21 May 2012 If TDS is deducted on 30-04-2011 u/s 194J
and the payment of TDS is to be made on
24-05-2012.

Then interest @1.5% p.m will be calculated for

a) 14 months i.e April 2011 to May 2012
(taking 1 day as part of the month or thereof)

b) 13 months i.e May 2011 to May 2012 because due date for same was 07-05-2011.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

21 May 2012 Interest is payable fro the due date of payment to the actual date of payment.

Accordingly, iterest shall be payable for the period 8th May, 2011 to 24th May, 2012.

Accordingly interest shall be payable for 13 months.

Lokesh Bazaj

Lokesh Bazaj (Querist)
Follow

21 May 2012 But Sir the law says this:

at one and one-half per cent. for every month or part of a month
****************************
on the amount of such taxfrom the date on which such tax was deducted to the date on which such tax is actually paid,
******************************
and such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200.”.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

21 May 2012 Yeah sorry, got a little confused.

Interest shall be payable from the date on which such tax was deducted to the date on which such tax is actually paid.

Accordingly period shall be 30.04.2011 to 24.05.2012, i.e., 14 months.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
Follow

21 May 2012 Mr. Lokesh, it is better to deduct & pay the TDS on same day only so that interest will be charged @1% only.

Lokesh Bazaj

Lokesh Bazaj (Querist)
Follow

21 May 2012 @ CA Amit ji so is it resolved that 14 months of interest has to be paid or ur view is different ?

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

21 May 2012 If TDS has been deducted at the time of making payment to the party then interest chargeable for 14 months i.e April 2011 to May 2012 @ 1.5%.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
Follow

22 May 2012 interst will be charged for 14 months @1%.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
Follow

22 May 2012 If the TDS is already deducted at the time of payment then TDS @1.5%

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now