Tds on contract

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 August 2014 Dear Sir

Company Recieved the Bill for the month of july 2014 as on 31.7.2014 and booked or Deduct TDS 2% , But Not Deposited till Date
Pls tell me Penalty

CA UMESH DULAL

CA UMESH DULAL (Expert)
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20 August 2014 you have to pay interest of 1.5% per month from the date of deduction to date of deposit.

CA UMESH DULAL

CA UMESH DULAL (Expert)
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20 August 2014 you have to pay interest of 1.5% per month from the date of deduction to date of deposit.

Querist : Anonymous

Querist : Anonymous (Querist)

20 August 2014 Dear Sir

Intrest for One Month or Two Month

CA UMESH DULAL

CA UMESH DULAL (Expert)
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20 August 2014 if you read the language of Law, it is from the date of deduction to date of payment.

but in your case, you have deducted on 31th july, you may deposit interest for 1 month.

CA UMESH DULAL

CA UMESH DULAL (Expert)
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20 August 2014 if you read the language of Law, it is from the date of deduction to date of payment.

but in your case, you have deducted on 31th july, you may deposit interest for 1 month.

Rupesh Jain

Rupesh Jain (Expert)
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20 August 2014 you have to deposit the intt @ 1.5% for one month up to 31.8.2014

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 August 2014 Two months interest has to be deposited. For July and August, one day delay(31-07-14) will be taken as one month.

CA UMESH DULAL

CA UMESH DULAL (Expert)
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20 August 2014 if you go by rule book, answer by seetharam is right.

CA UMESH DULAL

CA UMESH DULAL (Expert)
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20 August 2014 but technically it should be one month as due date for deposit of tds for the month of july is 7th of aug.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 August 2014 If you don't deposit on the due date you have to pay interest for the previous month also.

Interest on late deposit of TDS is applicable @ 1.5 % per month or part thereof. The period for delay is taken from date of deduction to date of deposit. So, in specific cases a delay of one day may lead to pay interest @ 3 % .