HI
I have a question on Interest Calculation on Delay in Remittance of TDS deducted.
Date on Which the Credit is made = 4/3/15
Date on Payment is Made= 4/4/15
Date on Invoice= 12/2/15
As per section 201, if any person who is liable to deduct tax at source does not deduct tax
at source, or after so deducting fails to pay the whole or any part of the tax to the credit of
the Government, then such person shall be liable to pay simple interest at following rates:
Interest shall be levied @ 1% for every month or part of a month on the amount of
such tax from the date on which such tax was deductible to the date on which such
tax is deducted. Interest shall be levied @ 1.5% for every month or part of a month on
the amount of such tax from the date on which such tax was deducted to the date on
which such tax is actually paid to the credit of the Government.
In other words, interest will be levied @ 1% for delay in deduction and @ 1.5% for delay
in payment after deduction.
Now if i Take from the date of credit i get 63 days is interest is calculated as AmountX18%X63/365
or Days are converted into months.. PLZZ HELP ITS URGENT... GIVE SUGGESTION AND ANY OTHER METHOD YOU KNOW. THANKS IN ADVANCE.
CAclubindia
