Interest Rate for Delay TDS Payment

This query is : Resolved 
 

(Querist) 20 August 2010

What is the rate for Interest Rate for Delay TDS Payment?

Details:-
Date of Deduction # 4th May 2009
Date of Payment # 7th July 2009.

But interest was not deposited till date?

It what should I calculate Interest for Delay payment?


CMA Ramesh Krishnan (Expert) 20 August 2010



Up to 30.6.2010 -Interest rate 1 % per month or part of the month

from 1.7.2010= 1.50 % per month or part of the month

so your case total interest is = 14 +1.50= 15.50%

Aditya Maheshwari (Expert) 20 August 2010

Interest would be = 1 + 1 + 1 = 3

visit this link
http://www.caclubindia.com/articles/a-day-s-delay-in-tds-remittance-interest-upto-3--6580.asp

CMA. Subhash Kumar Jha (Expert) 20 August 2010

Dear friends,

I also want to have a clarification as the person in the query is suggesting that the TDS was deposited late.

But it was deposited on 07/07/2009 i.e interest to be paid was 1 % each for may/June/July.

But the point is that TDS was deposited without the interest. So what will be the interest calculation , if to be paid now ?

CMA Ramesh Krishnan (Expert) 20 August 2010

Thanks Mr.Subash for correction

Sorry my calculation has been taken on 7th July 2010,

Actual Interest is 3 % which(1+1+1) only

sorry again for 1st reply

CMA. Subhash Kumar Jha (Expert) 20 August 2010

Its okay.... that Interest should be 3 of TDS amount, had it been paid alongwith the late payment of TDS.

But since the interest part was not being paid, will the interest be charged on the interest itself ?

CMA. CS. Sanjay Gupta (Expert)
20 August 2010

Interest payable will be 1+1+1.5=3.5% of TDS amount

Subhash ji interest will not be charged on interest.

CMA. Subhash Kumar Jha (Expert) 20 August 2010

Mr. Sanjay....

TDS paid in 2009 , not 2010.

So question of 1.5 % is not there ?

but as you said in the second line.. that interest on interest will not be charged, will your answer be the same considering the above (2009-----2010) ?

CMA. CS. Sanjay Gupta (Expert)
20 August 2010

Sorry i thought it is 2010.
It will be 1+1+1=3%
Even if deposited in 2010 no interest on interest amount will be charged.

CMA. Subhash Kumar Jha (Expert) 20 August 2010

thanks



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