Interest on tds applicable or not ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 October 2014 A date mentioned on the bill is 25May2014 and recorded in Tally on 25July2014, I want to know should I have to pay interest on TDS @ 1.5% or part if I deduct tds on 31July2014 & submit before 7th Aug 2014.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 October 2014 If you have made the payment for the bill on 31st July 2014(being TDS deduct date) no interest will be payable if you remit the TDS on or before 7th Aug 2014.

Querist : Anonymous

Querist : Anonymous (Querist)

09 October 2014 Seetharaman ji, As I know, payment made on bill date & payment date whichever is earlier. but payment date is after july, then we should have deducted TDS on bill date which is 25May2014.Am I right?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 October 2014 Bill date is irrelevant for TDS. It is Payment date or liability creation date which ever is earlier is the date to be considered for TDS. As liability created on 25th JUly(Tally recording Date) Deduction made on 31st July and remitting on or before 7th August will not attract any interest.

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