Interest on late deduction/late payment
This query is : Resolved
CA ANKIT GADA
(Querist)
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.?
18 February 2015
int payable from oct to feb in this case
CA ANKIT GADA
(Querist)
18 February 2015
But How much Interest would be applied?
CA ANKIT GADA
(Querist)
18 February 2015
But How much Interest rate would be applied?
18 February 2015
https://www.caclubindia.com/articles/details.asp?mod_id=6580#.VORe0uaUdic
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.
So you need to pay 4% interest on TDS Amount.
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.
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.
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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