Tax deducted at source

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avrandco (Querist)
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10 September 2019 Government paid rent of 2018-19 in the month of August, 2019. TDS remitted in a month of August, 2019 as rent was paid in August, 2019. Whether penalty is to be paid for Non-TDS during the year 2018-19 as rent accrued for that year and TDS challan paid for A.Y. 2019-20.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 September 2019 Interest applicable if accrual basis of accounting followed.

Karim N Shaikh

Karim N Shaikh (Expert)
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10 September 2019 Please clarify whether Rent paid by Government to your CO. or Co.paid rent to Government
if co paid Rent to Government : If Recipient of payment is Government (central , state , RBI , UTI , Corporation establised under Central Acts etc.)then no need to deduct tax at source (TDS ). Circular No 699 date 30.01.1995. Question of Interest and penalty for delay in payment or deduction is Not applicable
hope your Query resolved

avrandco

avrandco (Querist)
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10 September 2019 What is the case if the govt pays rent to Company?
Is penalty applies in that case?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 September 2019 No penalty/interest applicable in this case.

Karim N Shaikh

Karim N Shaikh (Expert)
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12 September 2019 PENALTY - As per section 234E, where a PERSON fails to file the TDS/TCS return on or before the due
date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs.
200 for every day during which the failure continues. The amount of late fees shall not
exceed the amount of TDS.

PERSON : As per Section 2(31) of Income Tax Act 1961. Government is not person. Therefore penalty & interest section not applicable to government.
Hope Query Resolved.

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