Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2015 Dear sir,

Please Explain,

When we have not paid the TDS amount and later the same has been paid with Interest, then also why we have pay Dealy in filing charges (rs.200.00) perday.
What is the logic behind this.

When we have paid the TDS amount in intime and not filed that time penalty amount is OK.
But when we does not have money to pay the TDS amount and the same has been paid with Interest. The dealy charges should be calcualted from 15 days from the date of TDS payment not from the ETDS due date.
Please explain.
regards
sudhakar

Amol S Joglekar

Amol S Joglekar (Expert)
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29 September 2015 The logic is very simple.....the credit to the deductee also gets delayed for the fault of deductor.

So? The deductor has to be meticulous in not only deducting the tax, but paying the same and filing the return

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2015 Dear sir,

For dealy in getting credit to the party purposes only we are paying the Interest on the TDS amount
And may logic is that, why we have to pay Rs.200.00 from the ETDS Due date , they should provide us 15 days time to file ETDS from the date of payment.

Amol S Joglekar

Amol S Joglekar (Expert)
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29 September 2015 I am sorry, I am NOT getting you.

First and foremost, paying interest SHOULD not entitle you for doing the MISTAKE/CRIME. Paying interest is NOT the liscence, is it? By paying fine to police dept, I should NOT be allowed to go through NO ENTRY zone, am I ?

Secondly, for filing TDS return, sufficient time is given. On top of that the same is not filed. And then, the deductee does NOT get the credit. What do you have to say on that please.?

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2015 Sorry for the debate

Sir,

Please under stand that, if would have paid the TDS amount in intime, then what you commented it is 100 % Correct (Not filed in time and we have to pay the fine of rs.200.00 per day)

But when there is no inflow , no chances of TDs payment at all, hence as a advantage the Government has only made rule we can pay with interest of TDS amount.
When they have given the option by using the payment by interest, they should also provide us the time from the date of payment TDS for ETDS filing, then only they should instit to pay the fine of rs.200.00 from the date of TDS amount paid.

Amol S Joglekar

Amol S Joglekar (Expert)
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29 September 2015 no no, in fact I want to know your views please. It is a very healthy discussion. Please continue.

Can you please give the example of "when there is no inflow"..I am not able to visualise this situation of INFLOW...

As per my reading of TDS section, TDS is required to be done at time of payment or at the time of credit of the amount.

When payment is made, TDS is deducted and paid before the 7th day of following month. Ample time is given.

When it is credited (Making year end provision) TDS is required to be made and deposited in Govt account before 31st May... Here also ample time is given...

So please tell me where is the question of INFLOW?

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2015 Sir

Inflow means,

Cash inflows, hence we are making the TDS payments very late with interest.

Amol S Joglekar

Amol S Joglekar (Expert)
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29 September 2015 That is what I was trying to point out right from beginning.

What has Income Tax to do with company's Cash flow?

Paying interest can NOT be taken as ABSOLUTE right, it is a provision provided by income tax act.

I have seen companies which pay TDS in time but do NOT pay the creditor for 6 months for want of inflow.

Most of the TDS rates are between 1% to 10%. Inflow should be planned in such a manner so as NOT to hamper the TDS amount. It is VICARIOUS liability.

e.g. A company booked a bill of INR100,000 on 02/01/2015, u/s 194C. It has to deposit TDS of 1000 or 2000 as the case may be before 07/02/2015. The actual payment of rest of the balance to the creditor can be made afterwards....

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2015 Sir,

you have totally the other side.

My aim is to aviod Rs.200.00 from the TDS due date

This should be from the actaul date of TDS payment

Amol S Joglekar

Amol S Joglekar (Expert)
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29 September 2015 No I am not on other side. I am on this side of the table.

See, let us take the example of a builder and promotor. Most of the contracts are given viz bbm, casting of slab, truncating the steel, painting, polishing, plastering and so on so forth. The beauty of these people is that they are more often under educated. Builders deduct TDS and use it as HELD up amount... neither pay TDS nor file tds return

Please give me your example of GOOD side of 200 rs fine...

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2015 Sir,

That is dealy charges on filing

Amol S Joglekar

Amol S Joglekar (Expert)
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29 September 2015 that is what I am not understanding....

Please explain your justification for that 200?

I told you that unless TDS return is uploaded, CREDIT does not get transferred to DEDUCTEE. Mere payment of TDS by the deductor does NOT entitle the DEDUCTEE to get the credit. Hence negative incentive (Penalty) is granted for late filing of TDS return.

What is your point?

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2015 Sir,

that's why I am getting dobut that after the payment of TDS, they should give us the time for 15 days to file ETDS Rturns and it is not necessary to collect the dealy charges (no body is benefitted) from the due date for who make the TDS late payments

Amol S Joglekar

Amol S Joglekar (Expert)
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29 September 2015 The time given to file TDS return is quite reasonable in its first place.

You want to focus only on DELAYED payment of TDS...right?

That is what I am trying to tell that "paying interest in itself should NOT be looked upon as BIRTHHRIGHT of the businessman