TDS
This query is : Resolved
22 July 2011
We have a mines and we have hired dumpers and giving some work to sub contractors. The subcontractors raised bill to us quarterly in date of quarter end i.e. 30.06.2008. But we have got the bill after 15th of next month i.e. 15.07.2008. So that we could not deposit the TDS on due time. I want to know that in this case Sec. 201(1A) is applicable in F.Y. 2008-09.
22 July 2011
You are not liable to pay any interest u/s 201(1A). I think if the demand has been raised its because while filing return dates were wrongly mentioned.
Simple logic...Tds needs to be deducted on payment or credit whichever is earlier. You received the bill on 15.07.2008. So you are supposed to deduct TDS on 15.07.2008 when you will credit the bill in your books. Therefore due date of payment of TDS will be 07.08.2008. If TDS deposited after that you will be required to pay interest. So if deposited within 07.08.2008 sec 201(1A) not applicable.
But in your return date of credit and date of deduction should be mentioned as 15.07.2008 and not 30.06.2008.
Simple logic...Tds needs to be deducted on payment or credit whichever is earlier. You received the bill on 15.07.2008. So you are supposed to deduct TDS on 15.07.2008 when you will credit the bill in your books. Therefore due date of payment of TDS will be 07.08.2008. If TDS deposited after that you will be required to pay interest. So if deposited within 07.08.2008 sec 201(1A) not applicable.
But in your return date of credit and date of deduction should be mentioned as 15.07.2008 and not 30.06.2008.
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22 July 2011
we have received the bill dt.30.06.2008 after 15th of next month but we have credited the bill on 30.06.2008 and on that day we have deducted the TDS too. The same process applied in quarterly TDS return too. The AO has issued a showcause u/s. 221(1) of the I.T. Act 1961. I want to to know that there is any way out and if possible give me the details of this act completely.
22 July 2011
we have received the bill dt.30.06.2008 after 15th of next month but we have credited the bill on 30.06.2008 and on that day we have deducted the TDS too. The same process applied in quarterly TDS return too. The AO has issued a showcause u/s. 221(1) of the I.T. Act 1961. I want to to know that there is any way out and if possible give me the details of this act completely.
22 July 2011
No way out. You have late deposited the TDS.
Simply write a letter to your TDS AO, informing him about the mistake. You should have booked the bill on 15.07.2008.
Just place the situation before him. I dont think this will be treated harshly. But as per your return you have attracted sec 221.
Simply write a letter to your TDS AO, informing him about the mistake. You should have booked the bill on 15.07.2008.
Just place the situation before him. I dont think this will be treated harshly. But as per your return you have attracted sec 221.
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25 July 2011
please suggest me that the what grounds will satisfy AO regarding the above matter. if possible please give me some case laws which is similar and in my favour.
25 July 2011
please suggest me that the what grounds will satisfy AO regarding the above matter. if possible please give me some case laws which is similar and in my favour.
26 July 2011
No case law no grounds. The AO has discretionary powers. Just inform him about the facts that you had wrongly credited the bill earlier. He will understand the mistake. These cases are sorted out mostly at this level.
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