Tds

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2014 audit fee provision is made before finalising a/c (may) dating year end, tax is deducted on may, should interest be paid to revenue on tds in this case?

CA Kumar Mukesh

CA Kumar Mukesh (Expert)

19 December 2014 Yes TDS interest need to be pay if date of TDS required to be deducted or required to paid are not as per provision of section 200 of income tax then interest need to pay as per section 201(1A) of the said act

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

19 December 2014 Yes Interest on late deduction of TDS has to be paid @ 1% p.m. or part thereof.

Rupesh Jain

Rupesh Jain (Expert)

19 December 2014 you have to pay intt for non deduction of tds and non payment of tds.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 December 2014 Mr Sanjay Gupta do you agree with my view.

Only provision for audit fees is made in March. Audit work is done in May, bill for audit fees received in May, payment made in May and TDS effected in May.
Under the above circumstances no interest is payable. The above is the situation of the questioner. Let us differentiate between provision and liability.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

19 December 2014 TDS is deducted on provision as well. TDS deducted on date if payment or credit whichever is earlier. It is normal practice to deduct TDS on provision for Audit fees made in the books on 31st March.

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