Tds on interest payable for f.y. 2014-15

Save Share

This query is : Resolved

MANOJ (Querist)

29 September 2015 Dear Sir,

We have taken Loan from corporate in 14/15 against which they had charged interest (as per verbal discussion) @ 8% & we have deducted tds @10%.

But now they have finally decide to charge interest @ 12%. & they had finalised there books & they said it cant be change now.

(We haven't paid ANY INTEREST yet).

so, now we are confused, as closing date is 30/9/15.

Can we show Interest payable for 14/15 in current year of 15/16?

Can we deduct TDS accordingly?

Or We should deduct tds on loan interest of 14/15 with late payment on TDS.

what about TDS Return?

Pls Guide us at the earliest.

Regards

Prashanth

Prashanth (Expert)

29 September 2015 Hi,
Charge Interest @ 12% (i.e. diff of 4%) from the date on interest payable and accordingly deduct the TDS, then file the revised TDS return for the respective quarters.

Note:Pay interest @1% PM for short decution of TDS.

Let me know if your query have been resolved.

MANOJ

MANOJ (Querist)

29 September 2015 Thanks for your Reply,

my query is resolved.

Pls confirm whether Interest on late payment of Tds is 1.5% or 1%.

Thanks & Regards

Prashanth

Prashanth (Expert)

29 September 2015 Hi,
Interest 1% for late deduction and late payment is 1.5% and its per month.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now