Tds not deducted whether interest payable

This query is : Resolved

Pranay Agrawal (Querist)
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05 May 2015 Company has made provision for consultancy fee on 31.03.2015 for Rs.100000 but failed to deduct TDS.
Company made payment of Rs.90000 on 15th May 2015 to consultant and deducted TDS of Rs.10000. COmpany deposited TDS in govt account on 10.06.2015.

Q1. Whether consultancy expenses will be allowable exps in FY 2014-15 or FY 2015-16?

Q2. Whether company will be requred to pay interest on TDS or not?

Q3. If interest is to be paid then at waht rate and for which period?

CA Mohit Bansal

CA Mohit Bansal (Expert)
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05 May 2015 Mr. Agrawal,

1. Yes. The consultancy charges are allowable expenditure in the FY 2014-15 itself

2. Yes. The company is liable to pay interest on the TDS amount. TDS in the context pertains to 31.03.2015, due date of which was 30th April.

3. Interest is to be @1.5% per month for four months from March to June(i.e., from the date of deduction till the date of actual payment)

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 May 2015 1. As TDS deducted and remitted before filing the return consultancy expenses will be allowed in FY 2014-15.
2. Yes company is required to pay interest on TDS.
3. 2% for March and April 1% each month and for 3% for May and June 1.5% for each month.

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