Default of TDS payment????

This query is : Resolved

Guest

Guest (Querist)

07 December 2010 Dear Expert,

I want to say, due to some reason like holiday of 5 & 6 dec-2010, i cant make a payment of TDS on 7th dec-2010 and i have no money to paid TDS on 7 dec-2010

if i have recd. payment in a/c on 8 dec-2010

and make a payment TDS (8th dec-2010)

What is the impact??????
I have no money to paid TDS on that days???

Regards,
Rahul Sharma

CS ,CMA Shambhu Kr. jha

CS ,CMA Shambhu Kr. jha (Expert)
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07 December 2010 Mr.Rahul
As you fave failed to pay the TDS amount within the time limit specified for that .
in this case you need to paid interest on tds amount for a months along with the tds amount .
7th is the last date for making payment so from the next time make a provision of the fund to meet statutory obligation .
Thanks

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 December 2010 In the given scenario you will have to pay TDS along with interest on late deposit of TDS @1.5% p.m.

Further Penal proceedings u/s 221 may be initiated. Max Penalty to the extent of TDS amount involved can be imposed by TDS AO if he his not satisfied with the reason of delay.

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Guest

Guest (Querist)

07 December 2010 Supoose i have not recd. fund from party in one year...that case i will deposit tds after one year with panalty @ 1.5% pm.

Thanks Sanjay Sir and Shambhu ji

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 December 2010 IT DOES NOT MATTER WHETHER FUNDS RECEIVED FROM PARTY OR NOT. TDS IS DEDUCTED AT THE TIME OF PAYMENT OR CREDIT WHICHEVER IS EARLIER. EVEN IF TDS DEDUCTED ON CREDIT AND PAYMENT NOT RECEIVED FROM PARTY YOU ARE LIABLE TO PAY TDS TO GOVERNMENT ACCOUNT AND IF LATE DEPOSITED YOU WILL HAVE TO PAY INTEREST ON LATE DEPOSIT OF TDS @ 1.5% P.M.

AT BEST YOU CAN SHOW TDS NOT DEDUCTION OF TDS AND CALCULATE TDS ON LATE DEDUCTION @1% (FROM THE DATE OF ENTRY TO DATE OF PAYMENT RECEIVED BY YOU FROM PARTY AND DEPOSITED TO GOVT A/C)

CS ,CMA Shambhu Kr. jha

CS ,CMA Shambhu Kr. jha (Expert)
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07 December 2010
Mr Rahul this is not an appropriate reason to show that you have not collected fund ,it is result of fault in the recovery system .
SO also give focus on that also so that your have efficient fund at given time
thanks

taxindiaconnect

taxindiaconnect (Expert)
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07 December 2010 Request sanjay to explain the later part of his reply in the above para.

CS ,CMA Shambhu Kr. jha

CS ,CMA Shambhu Kr. jha (Expert)
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07 December 2010 Ya Mr Sanjay are you mean that entry will be passed as latter date in order to avoid interest ,either that is justifiable in the income tax point of view ,
otherwise if you mean something different plz explain that
Thanks

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 December 2010 @ Taxindiaconnect
Sir it is a small trick.
Rahul is saying he booked the bill and made TDS entry on booking the Bill, but he did not have the money to pay TDS. So to save .5% of interest he can show that he forgot to deduct TDS (provided the bill was not settled) and when he had funds he can deposit the TDS along with interest @1% on late deduction of TDS instead of 1.5% for late deposit of TDS. Also late deposit of TDS will attract penalty u/s 221.

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