Tds interest

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 November 2014 We rae liable to deduct TDS on 24.09.2014 but we have deducted it on 17.10.2014. Now my question are-

1) whether we are liable to pay interest @ 1% p.m for 2 months only (as per TDS-CPC) ?

or
2) We also liable to pay int @ 1.5% for 2 Months (We have deposited TDS on 07.11.2014 ?

Furthe, in my opinion, since we have deposit the TDS on or before 7th Day of following month i.e on 07.11.2014, we are not liable to pay the Int @ 1.5% p.m .

Please help with explanation.

Thanking you all...........

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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30 November 2014 Yes you are correct. Interest on late deduction to be paid only. i.e., @ 1% for two month. No need to pay interest on late deposit since you have deposited within 7th of the month following the month of deduction.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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01 December 2014 Stand taken by Mr. Sanjay Gupta is correct and in accordance with the Section 201(1A).

Therefore, you need to pay Interest at the rate of 1% for two months

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