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Discussion > Income Tax > TDS >

Calculation Of Interest On Late Payment Of T.D.S. ?

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Account Manager

[ Scorecard : 266]
Posted On 04 February 2008 at 14:01 Report Abuse

Hi Friends,


1. I am facing problem in calcualtion of interest on late payment of T.D.S.


2. lets take the example on maonthly basis : - 


 A. I have passed journal entry for deduction of T.D.S. u/s 194A for the month of 7th  Apr'07 which has to be deposited into govt. treasury by the 7th May'2007 but i haven't deposited into the bank / govt. treasury till feb'2008. so how do i calculate the interest for late payment of T.D.S.?


 B. I have passed journal entry for deduction of T.D.S. u/s 194A for the month of 7th  May'07 which has to be deposited into govt. treasury by the 7th June'07 but i haven't deposited into the bank / govt. treasury till feb'2008. so how do i calculate the interest for late payment of T.D.S.?


 C. I have passed journal entry for deduction of T.D.S. u/s 194A for the month of 7th  June'07 which has to be deposited into govt. treasury by the 7th July'07 but i haven't deposited into the bank / govt. treasury till feb'2008. so how do i calculate the interest for late payment of T.D.S.?


 D. I have passed journal entry for deduction of T.D.S. u/s 194A for the month of 7th  July'07 which has to be deposited into govt. treasury by the 7th Aug'07 but i haven't deposited into the bank / govt. treasury till feb'2008. so how do i calculate the interest for late payment of T.D.S.?


The above mentioned case goes on till Feb'2008.


Can anyone help me in calculation of interest on late payment of T.D.S. or otherwise provide me excel file for calculation of interest on late payment of T.D.S.?


Please treat this case as very urgent.


Regards 


Sanjivkumar Shah


Online classes for CA CS CMA



Nagaraju Pogula
Partner

[ Scorecard : 175]
Posted On 04 February 2008 at 14:18

Hi, First find the no of months for each transaction. and calculate 1% for each month. Aggregately it will be 12%.




Sanjivkumar Shah
Account Manager

[ Scorecard : 266]
Posted On 04 February 2008 at 14:20

Hi Nagarajuji, Can i get format for calculation of this in excel sheet please Sir? Regards Sanjivkumar Shah



Nagaraju Pogula
Partner

[ Scorecard : 175]
Posted On 04 February 2008 at 14:31

Follow this...

1)Find out the TDs for each transaction to be paid. 2) Find out the due date to be paid ( it will be 7th of following month) if not paid with in the seventh consider its also one month.
3) if example 10 months has come from the due date then interest rate is 10%. Directly u can calculate. It means aggregately it should not cross 12% PA.


Example
TDS 10000
No of months 10 (late payment months)
Interest rate is 10%

then tds interest will (10000*10/100)=1000




(Guest)
Posted On 06 May 2008 at 21:08

what is the rate of interest on late payment of TDS




(Guest)
Posted On 06 May 2008 at 21:10

what is the rate of interest on late payment  of TDS




Vinoth Kumar. P
Finance

[ Scorecard : 68]
Posted On 17 June 2008 at 10:47

Hi suppose if i have made a journal entry for deduction in the month of April 07 and i have not paid till June 2008 what will be the impact.   Even in that case also the Interest rate should not exceed 12%.

Pls clarify

 




Ramkrishna

[ Scorecard : 270]
Posted On 17 June 2008 at 13:27

hI........

COUNT THE MONTH OF DELAY FROM THE BILL / INVOCIE DATE TILL PAYMENT DAY....

SUPPOSE FOR UR IST BILL...... I.E.  7TH OF APRIL,  IF YOU DEPOSIT THE TDS IN 18 TH JUNE .THEN     FROM 7 TH APRIL -7 MAY  - 1 MONTH & 8 MAY TO 7 JUNE - 2 MONTH AND FROM 8TH JUNE TO 18 TH JUNE AGAIN 1 MONTH .......SO TOTAL  3  MONTH DELAY.......... REM...NO FRACTION OF MONTH IS FOLLOWED...

HOPE THIS MIGHT HELP U.

THANKS

 

 




Vinoth Kumar. P
Finance

[ Scorecard : 68]
Posted On 17 June 2008 at 14:34

Hi ramakrishna

It is not from April 07 to June 07.  It is from April 2007 to June 2008.

whether interest will be for 15 months or 12 months.




Sumit

[ Scorecard : 669]
Posted On 17 June 2008 at 14:54

Hi Vinoth

Interest @ 12% per annum  or 1% per month is charged in case of late deposition of TDS.

So you can easily calculate it for any number of months.

from April 07 to June 2008 : Interest will be @ 1% p.m. for 14 months (as you are required to deposit the TDS by 7th of May 07 so interest is calculated not from the date of deduction of TDS but from the next date of default) or you can say that the interest is 14% for the whole period.

Regards

Sumit Aggarwal

9971444888



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