22 November 2013
Sir, one of our clients tax deducted at the time of payment but deposited into government account after the due date (i.e. after 7 th day of succeeding month) my question is for how many months have to calculate interest?
22 November 2013
Suppose tds deducted on 28th nov 2013 but paid to govt on 9th dec 2013 then u need to pay int for 1 month as the law says @1% per month or part thereof...means part is converted to full month.
this is the whole confusion. While we all believe that interest should be charged for one month, the tax department calculated interest for two months November and December. This often leads to short interest paid notices and prolonged appeal process.
22 November 2013
Suppose tds deducted on 28th nov 2013 but paid to govt on 9th dec 2013 then u need to pay int for 1 month as the law says @1% per month or part thereof...means part is converted to full month.
22 November 2013
tushar bhai I totally agree to what you are saying. But on more than one occasion we have received notice for short interest payment. Problem is that the cost of replying to those notices and appeals in much more than the short interest amount.
CAclubindia
