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Tds not filed

Ashish Jain (Student) (191 Points)

28 July 2015

Hello Friends, One of my assesse is paying monthly rent of Rs.20000/- since April'2015 but for the first quarter we failed to deduct TDS. what do I do?

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9 Replies

Tarun (AM) (216 Points)
Replied 28 July 2015

Deduct TDS now for all the amount paid or deposit TDS assuming 20,000 to be after TDS amount.

KRISHNAPRASAD IYER (B.Com , CA Final) (657 Points)
Replied 28 July 2015

Hello

There are three alternatives here:

1. You can ask the owner to pay you back the money but legally, the owner has no such obligation to give it back. If he gives it back, you have to deposit the same to the government, alongwith the interest rate (1.5% p.m). In this way, your client will have to bear only the interest portion alone.

2.You have to deposit the TDS from your account, and pay the same alongwith interest. The same maybe recovered from the owner of the property in the subsequent installments.

3. Do the same as per Mr Tarun has suggested

In all these cases, interest will be chargeable at the rate of 1.5% per month or a part of the month.

Regards

CMA Poornima Madhava (CMA) (13097 Points)
Replied 28 July 2015

Alternatively, since amount paid does not exceed threshold limit, u can deduct TDS (from apr to july) in july itself and show it in the Q2 returns. In this case, interest is not applicable. But this is debatable.

anil (CA Job) (98 Points)
Replied 28 July 2015

Dear Ashish tds us 194I is liable to be deducted once you cross the limit of Rs 1,80,000 I.e once December will be completed. ..so till that time dont worry of non dedction of tds..in the month of jan 2016 deduct on whole amount paid till jan..so there is no problem till date if you have not deducted tds.

Meena (Accounts Manager) (30 Points)
Replied 28 July 2015

Sir we registered esi, immediate we have to deduct the esi from employee and company hs to pay esi, and insurance done for employees then only we deduct the tds or what to do

Rashi Bajaj (CA) (752 Points)
Replied 29 July 2015

Ashish, I have to ask you if he is paying rent for business or personal purposes and whether audit is applicable to him. Coz the provisions are as under:

"The person (not being an Individual or HUF) who is responsible for paying any income
to resident by way of rent is liable to deduct tax at source in case the aggregate of the
amount of such income credited or paid or likely to be credited or paid during the
financial year by the aforesaid person to the account of, or to payee exceeds Rs.
1,80,000/-. Individuals and /or HUFs who are subject to tax audit are also under an
obligation to deduct the tax at source. "

So, sec 194I may just not be applicable in his case.

Ashish Jain (Student) (191 Points)
Replied 29 July 2015

Yes he is liable for Tax Audit and his yearly turnover is above ₹.2 Crores annually.He is paying rent for his shop by way of cheque of ₹20K/Month & he had paid rent for the 1st Q by cheque.So friends kindly guide me in this regard.

Rashi Bajaj (CA) (752 Points)
Replied 30 July 2015

In this case, you are liable to deduct TDS hence forth and also for the period you missed from the next payment. Total remittance to the dept. will be for TDS(old+interest) + Present tds.