TDS Non Deduction

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This query is : Resolved

Rajendra (Querist)

11 February 2010 Hi All,

In case where the TDS is Made at the time of payment to party & not at the time of credit of the account (i.e. late deduction) whether entire amt will be disallowed or interest will be levied @ 1% for that period

Plz clarify me

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

11 February 2010 TDS delay payment attract interest 1% per month or part of the month.once you paid with interest it will be allowed

Murtaza I Bhagat

Murtaza I Bhagat (Expert)

12 February 2010 If you are in sec.194C then above 50,000/- credit to any account have to deduct tds or in payment mode above 20,000/- deduction has to be made. other as per rules. if didn't do that you have to pay 1% of interest & non filling of tds return will track panelty of rs.100/- from the time of default period.

CA Prashant Gupta

CA Prashant Gupta (Expert)

12 February 2010 if you deduct TDS on time of payment and not on credit which is earlier then you have to pay interest 1% only. No penalty and no disallowance.

Vishnu Saboo

Vishnu Saboo (Expert)

12 February 2010 as far as concern the diallownce,it depends on kind of expense and if the tax is deducted and deposited before filing the annual return i.e. 30th sep, will not be disallowed.

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