Applicability of interest on tds late provision.
This query is : Resolved
17 January 2012
If advance payment towards Professional fees is made(after deducting TDS amount but provision is not made) and provision is made later in that month itself so will it attract Interest on late provision of TDS?
Eg: Professional fees amounts to 20000 and against which Advance of 18000(after deducting TDS @10%) is made on 24th December and TDS provision is made on 28th December.(i.e. 4 days after advance payment) So in this case will it atract Interest on late provision of TDS?
Eg: Professional fees amounts to 20000 and against which Advance of 18000(after deducting TDS @10%) is made on 24th December and TDS provision is made on 28th December.(i.e. 4 days after advance payment) So in this case will it atract Interest on late provision of TDS?
17 January 2012
If the amount is 20000/ only TDS is not required to be deducted.
.
However, in other cases, TDS is required to be deposited on 7th Jan., and it is paid on
the basis of -"amount paid or credited which ever is earlier" . Further the due date of deposit is not disturbed so no interest has to be paid on late deduction of TDS.
.
However, in other cases, TDS is required to be deposited on 7th Jan., and it is paid on
the basis of -"amount paid or credited which ever is earlier" . Further the due date of deposit is not disturbed so no interest has to be paid on late deduction of TDS.
17 January 2012
Thank you sir for your quick response.
Can you tell me from where does the interest of late deduction on TDS attracts in my case if it has not been deducted still?
Can you tell me from where does the interest of late deduction on TDS attracts in my case if it has not been deducted still?
17 January 2012
For non deduction Interest will start from the date of payment/credit
and it will charged up to the date of deduction.
.
In case of late payment part of the month has to be considered as 1 full month.
.
In this case you debit the amount directly to the professional fee account and Deduct TDS on the same date if you are maintaining accounts on computer system.
.
You can deposit the amount of Dec2011, right now by adding 1 month interest.
.
and it will charged up to the date of deduction.
.
In case of late payment part of the month has to be considered as 1 full month.
.
In this case you debit the amount directly to the professional fee account and Deduct TDS on the same date if you are maintaining accounts on computer system.
.
You can deposit the amount of Dec2011, right now by adding 1 month interest.
.
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