Interest on TDS Payment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 July 2010 Hi
Respected Members

Can any one tell me ? I am doing tax audit of Pvt. Ltd. and in such company following activities are observed:-

First Expenses of April is booked in march but tds is on 1st May and such tds is paid in June due to late receive of bill i.e. in may.

So whether it is wrong or right?

And whether question of interest on late payment is arise or not?

Because Tds is to be deducted payment or credit whichever is earlier.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 July 2010 Look TDS to be deducted on date of payment or credit whichever is earlier. If bill is received late then on date of receiving the bill we are required to deduct TDS at prescribed rate. From that date your due date of payment will be considered nad if deposited beyond that due date you will be required to pay interest @1.5 p.m. (Applicable from 01.07.2010 earlier it was 1 % p.m.)

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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19 July 2010 Expenses of April can not be booked in the month of March because expenses are not allowed on advance basis. So those expenses shall not be allowed in the relevant A.Y. . So according to me for this proper disclosure should be made in Form 3CD.

For other point i agree with the reply of the expert.h

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