Delay payment of TDS on provision

This query is : Open

CA Santosh Shinde (Querist)
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30 April 2010 Dear Sir,
I have made the provisions of commision payment which, i am not sure it will be paid so i will not deduct TDS on that. Please tell me, what are the implications? and further if it is disallowed in the current year, then will i have to pay the penal interest next time, when i will make the payment and deduct TDS?

chetan soni

chetan soni (Expert)
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30 April 2010 There will be following implication:

01. It will be disallowed in current year but will be allowed in next year on the basis of payment of TDS
02. You need to pay the penal interest along with the TDS payment
03. Also you need to revise your TDS return to give the effect of TDS deduction. If the TDS return has not been filed then you need to pay the penalty on delay in return file.

Experts pls. comment

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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02 May 2010 it will be disallowed in the current year and allowed in the year of payment

CA Santosh Shinde

CA Santosh Shinde (Querist)
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03 May 2010 Further i wanted to ask...if i am not getting the benefit of expense and not saving any tax on profit in the current year on the said provision then if i pay that in next year why should i pay it with penal interest coz i am not geting any benefit i wil get it in the next year itself...

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