Default in payment of tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 December 2011 there is a company XYZ Ltd.who has defaulted in the payment of tax deducted at source.The duration of default is more than 12 months and the amount is also large.Is there any way to avoid prosecution???
Or
Whether compounding of offence is possible???

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 December 2011 No way out. Just go ahead and pay pay the TDS along with the interest on late deposit of TDS @1.5% per month. Penalty u/s 221 may also be imposed on you for late deposit of TDS subject to maximum amount of TDS involved.

Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2011 thanks for the prompt reply.the company has already paid the TDS..but a notice under S.276B has been issued.thus, prosecution is the main concern.is there any way out of prosecution??

Aditya Maheshwari

Aditya Maheshwari (Expert)
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23 December 2011 Reply the notice by giving some reasonable cause for the delay like paucity of fund or loss in some business or accountant left the job.

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