interest on tds
This query is : Resolved
23 March 2009
sir
we are a cha firm.I have not deducted tds from april 08 to feb 09 now i will deduct tds for april to feb.the tds amount is rs 74695.00 but i dont now how to cal. the interst.so please say me the formula for cal. interest on tds. 1% interest is charged so from april to feb its 11% so i should cal.74695*11%=8216.00 is it right please say.
please say me the accounting entry to pass the tds for party
party dr
interest dr
tds payable cr
is the entry right.
regards
survesh
we are a cha firm.I have not deducted tds from april 08 to feb 09 now i will deduct tds for april to feb.the tds amount is rs 74695.00 but i dont now how to cal. the interst.so please say me the formula for cal. interest on tds. 1% interest is charged so from april to feb its 11% so i should cal.74695*11%=8216.00 is it right please say.
please say me the accounting entry to pass the tds for party
party dr
interest dr
tds payable cr
is the entry right.
regards
survesh
23 March 2009
INTEREST ON TDS SHOULD BE CALCULATED FROM THE DAY IT BECOMES DUE & PAYABLE. SO IF U R LIABLE TO PAY THE TDS IN APRIL THAN INT.SHOULD BE FROM MAY TO FEB. IN THE SAME WAY FOR MAY TDS INT SHOULD BE FROM JUNE TO FEB LIKEWISE FROM THE MONTH IT IS PAYABLE TO THE MONTH IT IS PAID.
THE ENTRY U HAVE PASSED IS CORRECT.
THE ENTRY U HAVE PASSED IS CORRECT.
23 March 2009
Interest for dealy in payment of TDS needs to be paid for the period from the date on which such tax was deductible to the date on which such tax is actually paid.
In your case as the tax was deductible in Apr-08 onwards which will be deducted in Feb-09 and paid in Mar-09, interest TDS for Apr-08 should be calcualted for 12 months as the interest is @1% for every month or part of the month.
The accounting entry mentioned above is correct. Please ensure that you show the amount of interest seperately at the time of payment of TDS.
Also, the amount of interest will not be allowed as deduction at the time of computation of income for the previous year.
In your case as the tax was deductible in Apr-08 onwards which will be deducted in Feb-09 and paid in Mar-09, interest TDS for Apr-08 should be calcualted for 12 months as the interest is @1% for every month or part of the month.
The accounting entry mentioned above is correct. Please ensure that you show the amount of interest seperately at the time of payment of TDS.
Also, the amount of interest will not be allowed as deduction at the time of computation of income for the previous year.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Difference between Date of Payment and Date of Deduction?
- Unregistered suppliers utility
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- ITDS U/S.194T of Firm
- GST Rate for Catering Services
- FCRA 6 E- Intimation
- Non-Compliance documents have not been submitted by the contractors debited
- EXPORT COMMERCIAL INVOICE HSN CODE
- URGENT-Eligible leaves being shown as 24 days for 3 years Articleship instead of 156 days in 108
- TDS ON EMAIL DOMAIN SERVICE BILL
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
