Interest on late deposit of tds

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sunny (Querist)
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13 July 2013 I received a bill in June. Bill date is 25/04/13.

I booked the bill on 30th June and deposit the tds on 7th july.

Whether interest would be levied if so how it would be calculted and for what period.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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13 July 2013 yes int @1.5 pm for 3 months.

sunny

sunny (Querist)
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13 July 2013 Thanks Sir for Reply.
Please mention how it is calculated.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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13 July 2013 It should have been deposited by 7/5/2013.

count 7/5/2013 -6/6/2013 @1.5- 1month

7/6/2013-6/7/2013@ 1.5 month-1 month

7/7/2013= 1 day is to be taken as 1 whole month as part

of month is to be taken as full month.

Total for 3 months.@1.5 %

Ganeshbabu K

Ganeshbabu K (Expert)
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13 July 2013 Please refer Section 201(1A)

1)First of all interest @ 1.5% was not applicable in your case as tax was deducted in june and the same was deposited duly with in 07/07/2013...SO no need to pay interest @1.5%.

2)But there is chance that interest 1% will be applicable to you..
if you have made payment before date of booking invoice.

if you have made payment before receipt of invoice in such a case interest is at the rate of 1% for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted

Please note

tds is deductible date of booking invoice or date of payment which ever is earlier

So in short...

(i)if you have made advance payment before receipt of invoice..

interest @1% will be applicable from the date of payment to date of booking invoice(means date of deduction of tds)

(ii)if you have not made any payment before booking invoice interest is not applicable even at the rate of 1% also.

Thanks & regards
Ganesh babu k

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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13 July 2013 Kindly refer the folowing link.

https://www.caclubindia.com/experts/details.asp?mod_id=577865

Ganeshbabu K

Ganeshbabu K (Expert)
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13 July 2013 1)to make it clear author has to give clarity on what date tds was deducted if tds was deducted on june interest 1.5 % will not be applicable and there is a chance that 1% will be applicable as explained in above reply.

However as you said if the tax was deducted(means tds entry in books) was made in 25.04.2013 in that case as you said 1.5% interest will be applicable..

There was a difference between tds deductable and tds deducted..

Above link says interest applicability incase of tds deducted but not paid in due date..

But author has not given clarity on what date tds deduction entry was made in books...

if you assume that tds was deducted in 25.04 then you are correct

but generally tds will be made on receipt of invoice except in he case of advance payment..so assuming there is no advance payment and tds was deducted on june only after receipt of invoice my opinion was correct..

Refer provisions of section 201(1A)

Thanks & regards
Ganesh babu k

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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13 July 2013 Also refer the following link.

https://www.caclubindia.com/articles/a-day-s-delay-in-tds-remittance-interest-upto-3--6580.asp

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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13 July 2013 Nicely explained by Ganeshbabu. Bill date is not material you can book it on 30th June and will not be treated as deafult.

TDS is required to be deducted on the date of payment or credit whichever is earlier so if teh bill is booked on 30th June and TDS deducted on 30th June and Deposited on 7th July it is not a casr of late deposit. Hence interest not needed to be paid.

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