Interest on late deduction/payment of tds

This query is : Resolved

Asad Quadri (Querist)
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24 November 2012 Interest on non deduction of TDS is 1%pm or 12% pa and
Interest on late payment( after deduction)is 1.5%pm

Q. What should be the deduction date
-Date of Billing or
-Date of receiving the Bill or
-Date of making entry in books

please give specific knowledge with reference if any.
How interest is to be calculated for late deduction and late payment( datewise) give an example

CA.Amit Revankar

CA.Amit Revankar (Expert)
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25 November 2012 As per provision , it is the date of credit in books or payment, whichever is earlier.
The period for interest is counted from the day of deductible, incase of not deducted and deduction date, incase of late payment... Interest is 1 and 1.5 percent respectively per month or thereof

V K Bajaj

V K Bajaj (Expert)
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25 November 2012 Mr Asad Date of receiving the Bill should be date of deduction.

Bill is entered on receipt of bill so date of entry cannot be earlier than that of receiving the bill.

@ Mr Amit Revankar!

Yes the provision says date of credit or payment, whichever is earlier. But it does never mean for a delayed credit or payment but in a normal business.