Tds deduction on salary

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Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2015 Dear Concerned,
Plz help me out in solving a query with one of my client....
An employee in his organization left in april-2013. His Gratuity amounted to 17,00,000/-. They calculated TDS and the amt is 2,23,506/-. But they hadn't deducted it and paid entire amt 17lacs to Employee. Now on today employee agreed to give TDS portion from his gratuity amt. How can this be remitted to Govt. and what are penalties that should be borne by company....tax complications and Consequences.

Plz help me in resolving this query...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 December 2015 Company has to remit the amount with 12% interest to Govt. Did the employee shown the taxable portion in his return and paid taxes on it.

Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2015 No employee hadn't shown in his return and 12 % is pa right and till now 32 months so 32% on TDS amt??

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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19 December 2015 Interest will apply 1% per month or part of the month for the default months from the date of tds deductible. penalty may not apply till the department finds ans raise the demand

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Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2015 And Sir....may I know what is the Turnover limit for Transfer Pricing Audit in Ay14-15

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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19 December 2015 For domestic transfer pricing the limit for ay14-15 is Rs. 5 Crore ( from ay-16-17 onwards Rs. 20 Crore

Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2015 For international Sir....

Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2015 We provide services to other countries related parties Sir,....So are we covered under domestice transfer pricing or international one????????

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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19 December 2015 For international no limit . the Transfer pricing documentation is to be prepared irrespective of the quantum limit of the international transactions. But the threshold limit for the international transactions is Rs.1 Cr for the Assessing Offcers for prearation of the TP study. For the TPOs, it is Rs.15 Cr of international transactions for preparation of the TP study.

Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2015 Thanks alot Sir......it helped me so much.........