TDS
This query is : Resolved
25 January 2017
LDC taken at 0.15℅ for professional services for FY15-16
LDC for FY 16-17 is 0.01℅
Due to some calculation mistake , a bill of February 2016 was under raised or we can say under paid of Rs. 950000
Now the under payment is being paid along with interest in January 2017.
at what rate TDS should be deducted?
At what amount interest should be taken?
25 January 2017
Tax is to be deducted at the time of payment to the vendor or credit to his account whichever is earlier.
if the amount was underinvoiced, and invoice is raised in subsequent year it would be mean the amount was not paid or credited in the FY 15-16. Hence the rate of tax applicable in the year of payment or credit is to be applied.
If it was under-paid, please ascertain if the amount was paid or credited to the vendor.
Ultimately you must consider the rate of tax applicable as per LDC at the time of payment or credit. Accordingly the interest may be applied.
if the amount was underinvoiced, and invoice is raised in subsequent year it would be mean the amount was not paid or credited in the FY 15-16. Hence the rate of tax applicable in the year of payment or credit is to be applied.
If it was under-paid, please ascertain if the amount was paid or credited to the vendor.
Ultimately you must consider the rate of tax applicable as per LDC at the time of payment or credit. Accordingly the interest may be applied.
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