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Tds calculation method

Narayana Acharya (Others) (34 Points)

01 January 2014

this regards TDS paid on professional fees by hospital / nursing homes:

1st qtr - fees paid 10,000/- TDS not done

2nd qtr - fees paid 5,000/- - TDS not done

3rd qtr - fees to be paid is 20,000/-. Should the TDS deducted now be 2000/- or 3500/-?

would there be a interest penalty for this?

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11 Replies

Mihir (Wealth Manager) (5293 Points)
Replied 01 January 2014

TDS to be deducted on full 35,000/-

Interest is likely to be payable.

Shyam C.Pujara (Student (C.A Final)) (177 Points)
Replied 01 January 2014

HI....

TDS will be deducted on full amount (ie.35000/-) in this kind of cases it would be in the interest of entity to deducted TDS at first instance only without waiting for crossing monetary limit.

K.Navya (Student) (23 Points)
Replied 01 January 2014

Hi In my view, TDS should be deducted on full amount i.e. 35000/-

Mohsin Mustafa (Article Assistant) (21 Points)
Replied 01 January 2014

TDS of Rs. 3,500 should be deducted and while paying the TDS amount interest u/s 201 @ 1p.m should be paid. While calculating interest part of the month should be considered as whole month. Calculation of interest starts from the date of deduction till the date of payment.

ADV PRODYUT MAITY (TAX PRACTITIONER) (78 Points)
Replied 01 January 2014

If i don't know exactly how much bill isto be paid, when the amount(20000) cross 30000 so this anount(20000) chould be tds deducted...

RANGANATH SHENOY (CHARTERED ACCOUNTANT) (29 Points)
Replied 01 January 2014

Interest liablity will not arise until and unless you knew in advance that it will cross the threshold

CA Jainam Shah (Chartered Accountant) (190 Points)
Replied 01 January 2014

TDS to be deducted on entire 35000. Question of Interest would arise once threshold limit is crossed..

1 Like

Arif Ali (Apt Co Advisory) (1230 Points)
Replied 01 January 2014

Tds will be dedcued on total 35000.00 however question of interest is not arised if you not know at the time of first payment that the threshold limit will be crossed in this financial year.

CA Kiran Sutrave (CA) (428 Points)
Replied 01 January 2014

TDS liability will be Rs. 3,500/-.

Interest liability will not arise in this case since the first 2 payments made by the assessee were within the exemption limit. If Rs. 3,500/- is deducted in the month of December then it is payable to the Government on or before January 7th and if it is not paid then interest liability will arise @ 1.5% from the date of deduction till the date of payment.

1 Like

Chintan Shah (Service) (55 Points)
Replied 02 January 2014

TDS needs to be deducted on entire 35,000 @ 10% On Interest front 1%pm will be applicable on 15000 only & not on 20000 as you are deducting and making teh payment if TDS is deducted but not paid interest will be applied @ 1.5% pm