TDS not deducted


This query is : Resolved 

05 January 2010 Sir,

One trust paying every month Rs. 10,000/ as security charges. But, they are not deducting TDS. As they told that, they are deduct the tds on march 2010 for entire amount ie., Rs. 1,20,000/-

Now, my question is:
1. when the aggregate payment exceeds Rs. 50,000/- it is liability to deduct the tds. But, trust not done. Then, whether it is liable for interest?

2. Can trust deduct tds on entire payment on year end?

3. If, interest on tds applies, then how many months interest will be charge? Because, upto Rs. 50,000 no liability arises. Therefore, (as per my knowledge) initial 5 months no defaults arises.

Please give answer for me

05 January 2010 1. Liable to pay interest.
2. Tax has to be deducted every month.
3. Default arises from the first month onwards because liability to deduct tax arises from first month onwards since the sum likely to be credited or paid during the financial year exceeds fifty thousand rupees. For details read proviso to section 194C(3) of the Income tax Act,1961.

05 January 2010 agree


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