Forget to deduct tds

This query is : Resolved

Lakshay (Querist)
Follow

29 November 2013 While making payment, tds should be deducted but i was forget to deduct tds u/s 194H. This was the only payment made to him.
Is there is any way other than deposit of tds amount from my own pocket.

Please guide.

CA Harish Shyam Choudhary

CA Harish Shyam Choudhary (Expert)
Follow

29 November 2013 you have to pay TDS with interest and penalty and file return. demand the amount equivalent to TDS back from the person. but it is necessary to pay TDS.

Lakshay

Lakshay (Querist)
Follow

29 November 2013 I think interest will be levied @1%. Am i right

CA Harish Shyam Choudhary

CA Harish Shyam Choudhary (Expert)
Follow

29 November 2013 The rate of interest is 1.5% per month or part of the month

kunal

kunal (Expert)
Follow

29 November 2013 there is one alternative to avoid disallowance without paying tds but you have to incurr Interest on TDS.

obtain form 26A from payee's accountant.

kunal

kunal (Expert)
Follow

29 November 2013 more over you can also escape from tds return late filling fees i.e. Rs. 200 per day, if u didn't file tds return

Lakshay

Lakshay (Querist)
Follow

03 December 2013 Dear Kunal,

Thanks for your feedback.

Can you please further explain in respect of form 26A and how we can avoid disallowance by paying interest on tds.