FROM APRIL-13 TO AUG-13, WE PAID PROFESSIONAL FEES @ 5000/- PER MONTH, i.e., total paid till now 25000/- we received Sept 13 bill of 6000/-on 30.09.2013. So total Professional Fee is now 31000/-. So while making the payment of this 6000/- bill, we deducted TDS @10% Rs.3100/- on 31000/-and paid cheque of Rs.2900/- on 05.10.2013( as limit for starting deduction of TDS of 30000/- is crossed) Now, we paid this TDS of 3100/-on 07.10.2013 to Govt.
(1) Is this O.K. ? OR (2) We should pay 500/- TDS for each month separately & add interest @1.5% till date of deposit of TDS, i.e., 07.10.2013 ?
In short, when TDS is deducted when the limit is crossed, then, should we pay this total TDS on 7th of next month, without interest ?
08 October 2013
In my view, which could be wrong (let other experts also comment), is that you are supposed to deduct Rs 600 as TDS against the current payment. This treatment will hold good where you can argue that you didn't expect payment to the particular vendor to exceed Rs 30,000 in this year.
However, wherein it is established that it was very much likely that you will pay more than Rs 30,000 in the relevant financial year, then you have to deduct TDS on the whole amount. Here, with abundant caution, you may preferably pay tax along with interest.
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