A company paid professional fees of Rs.40000/- to Mr.X on 15th December 2014. By oversight tax of Rs.4000/- was not deducted from this payment made. The mistake was noticed on 20th February 2015. The company remitted the tds of Rs.4000/- immediately on the same day (20.02.2015) and also recovered the same subsequently from the party. Interest of Rs.120/- (@ 1%) for three months (December, January and February) was also calculated and remitted alongwith tds of Rs.4000/- (this interest @1% is paid towards non-deduction of tax)
It shall be noted that the DATE OF PAYMENT / CREDIT to party is 15th December 2014. The ACTUAL DATE OF DEDUCTION OF TAX is 20th February 2015.
My query in this regard is whether the above TDS should be reported in the Third Quarter or during the Fourth Quarter.
10 March 2015
Guptaji, as per my view the TDS details may be filed with 4th quarter ETDS return. Because the deduction was made at Feb 2015 and remitted with late deduction interest.
10 March 2015
Dear Mr.Sanjay Gupta and Mr.Senthil Subramanian
Thanks for your reply. I prepared a dummy return with the help of RPU provided by NSDL.
From my note you will observe that the tax was deducted only in February 2015. In the dummy return for Third Quarter, I put the date of deduction as 20.02.2015. Upon validation it showed a error message stating "date of deduction does not correspond to the return being filed"
I prepared a dummy return for fourth quarter in the RPU and mentioned the date of payment as 15.12.2014 and date of deduction as 20.02.2015. Upon validation, no error throwed up.
It proves that since the deduction of tax has happened only in Fourth quarter, the details pertaining to such transactions should be reported only in the fourth quarter and not in third quarter. This is because "Date of Deduction" is the criteria for deciding the quarter in which the details to be reported.
CAclubindia
