Interest on late deduction/late payment

This query is : Resolved

CA ANKIT GADA (Querist)
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18 February 2015 XYZ Ltd received a Bill of Rs.10,000/ on Oct 2014 but deducted TDS in the month of Jan 2015 and paid TDS on 07 Feb 2015. Here there is late deduction of TDS. So how much XYZ ltd liable to pay Interest on Late Deduction as well as Late Payment???? Is it only 1%p.m. or 2.5% p.m.?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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18 February 2015 int payable from oct to feb in this case

CA ANKIT GADA

CA ANKIT GADA (Querist)
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18 February 2015 But How much Interest would be applied?

CA ANKIT GADA

CA ANKIT GADA (Querist)
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18 February 2015 But How much Interest rate would be applied?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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18 February 2015 https://www.caclubindia.com/articles/details.asp?mod_id=6580#.VORe0uaUdic

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 February 2015 Interest to be paid on late deposit of TDS @1% for 4 months i.e., Oct, Nov, Dec & Jan.

So you need to pay 4% interest on TDS Amount.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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19 February 2015 sanjay ji i think it will be from oct to feb as the date of payment is 7th of feb so dept will take 5 months in interest cal.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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19 February 2015 Tushar Ji TDS liable to be deducted in October but deducted in January so short deduction interest applicable for 4 months.

Once TDS is deducted it should be paid within 7th of Feb. Since TDS deposited on 7th Feb no further interest is payable.

Hope its clear.

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