Regarding tds

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This query is : Resolved

Rani Jain (Querist)

21 December 2015 Hello Sir,

I am deductor, but of whom I have to deduct TDS is clear through statement which I receive from party.

Now for the month, I receive the ledger on 7th day of next following month (for example - for the expenses of the month of Jan, 2015 I receive statement on 7th Feb, 2015); because of which there is delay in deposition of TDS by one month.

So whether I am liable to pay interest on late deduction of tax.
Please while replying, please consider the situation, amount of expenses incurred by me is clear through the statement of party(deductee) only.

Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 December 2015 You are liable for interest on late deduction of tax if you book the expenses in the month of January.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)

21 December 2015 As per TDS provision... TDS required to be deducted at the time of payment or amount credited in books of A/c for expenses. in your case where expenses for the month of January 2015 are booked in the month of February 15 then TDS required to be deducted in the month of February only, not in the month of January 15, (Assume no advances are made)..

Further if TDS is deducted in the month of February 15 and deposited on before 7th March 15, then there is no Interest liability. and in case of failure to comply with above provisions interest required to pay under section 201 of Income Tax Act 1961..

Thank you....

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