Tds

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vinaykumar deshpande (Querist)
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11 January 2014 TO,
EXPERTS
SUPPOSE IF TECHNICAL PROFESSIONAL IS TAKEN ON CONTRACT AND WAS GIVEN ADVANCES OF SAY RS. 50,000/- PER MONTH GIVEN TILL COMPLETION OF WORK WHICH SAY, TOOK 7 TO 8 MONTHS. WHEN GOT COMPLETED AND RECD BILL FOR SAY RS.8,00,000/-.

HERE, TDS DEDUCTED ON 8,00,000/-AT ONE TIME RS.80000/- AND REMITED TO GOVT.
IS THIS CORRECT OR NOT? IF NOT WHAT WILL THE PENALTY/INTEREST LEVIED ON THIS?
THANKS

Nikhil Kaushik

Nikhil Kaushik (Expert)
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11 January 2014 no it is not correct...TDS should have been deducted each month and deposited with govt by 7th day of next month. in this case, you need to compute interest on TDS for each of the earlier payment and deposit the same with the govt and appropriately reflect the same in the TDS returns for relevant quarters.

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