Tds

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Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2013 One of my clients has paid 10 lacs advance to contractor without deducting TDS in F.Y. 2012-13 and now he is depositing the TDS in July-13 moreover he has not filed his TDS return for last year. what could be the interest & penalties?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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15 July 2013 Interest is 1% per month from the actual date of payment to contractor on TDS amount. you can file after payment of TDS and interest, penalty Rs.200 per day from the date of return due date on demand you can pay the same

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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17 July 2013 Since you have not deducted the TDS there is no interest till TDS is deducted. It is reverted to the provisions of Section 40a(ia). Now, you can deduct tax from the other payments for the entire amount including the advance and for that you have to take a letter from the person to whom payment has been made that no TDS is to be deducted as this amount is advance and in case no agreement is entered it is refundable to the company and till any work is done it is to be treated as advance or loan free of interest.

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