Tds u/s 234e
This query is : Resolved
10 February 2014
Dear Sir/friends,
Kindly clear my following doubt.
Some of my friends told, there is a hearing in court is going on regarding the Payment of late filing fee of TDS U/s 234E and also i heard that, court gave stay order for "no need to pay the late filing fee u/s 234e".
&
also i read an article in our CA Club regarding this 234e penalty, which's posted on 06/11/2013, in that article stated that "as per section 204, if any late fee is due and not deposited along with the TDS statement none can be held responsible to deposit it. and section 200A(1) also doesn't call for late filing fee."
So, I kindly request you to clarify that, whether court issued the stay order, if yes means, please provide me the state name & order Number. and
Should late filing fee u/s 234e must be deposited or no need?
Kindly clear my doubts in details.
Thanks & regards
Raja
Kindly clear my following doubt.
Some of my friends told, there is a hearing in court is going on regarding the Payment of late filing fee of TDS U/s 234E and also i heard that, court gave stay order for "no need to pay the late filing fee u/s 234e".
&
also i read an article in our CA Club regarding this 234e penalty, which's posted on 06/11/2013, in that article stated that "as per section 204, if any late fee is due and not deposited along with the TDS statement none can be held responsible to deposit it. and section 200A(1) also doesn't call for late filing fee."
So, I kindly request you to clarify that, whether court issued the stay order, if yes means, please provide me the state name & order Number. and
Should late filing fee u/s 234e must be deposited or no need?
Kindly clear my doubts in details.
Thanks & regards
Raja
10 February 2014
Dear Raja,
The case is yet to be finalised...the stay order is only an interim stay without any predjudice to the merits of the case.
with regards to liability for non-payment at the time of filing of the return, there is this one argument that people are taking taht if not paid before filing the return, it cannot be asked for later on. However, such argument is yet to withstand judicial scrutiny.
Th stay order was by Kerala High court. But I would recommend you to follow it as an interim stay in Kerala High court doesnt provide you any protection at any other state of the country.
The case is yet to be finalised...the stay order is only an interim stay without any predjudice to the merits of the case.
with regards to liability for non-payment at the time of filing of the return, there is this one argument that people are taking taht if not paid before filing the return, it cannot be asked for later on. However, such argument is yet to withstand judicial scrutiny.
Th stay order was by Kerala High court. But I would recommend you to follow it as an interim stay in Kerala High court doesnt provide you any protection at any other state of the country.
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11 February 2014
Thank you sir,
But my doubt is,
Should late filing fee u/s 234e be paid or no need after filing the tds statement?
But my doubt is,
Should late filing fee u/s 234e be paid or no need after filing the tds statement?
11 February 2014
as i read the section, it should be paid. all what section 234e says is that is should be paid before filing the return. no where it says that if the return is filed without paying 234e, the liability is extinguished...
18 February 2014
you are welcome Raja
09 February 2015
Mumbai High Court rules - 234E fees constitutionally Valid
Rashmikant Kundalia vs. UOI (Bombay High Court)
S. 234E: The late filing of TDS returns by the deductor causes inconvenience to everyone and s. 234E levies a fee to regularize the said late filing. The fee is not in the guise of a tax nor is it onerous. The levy is constitutionally valid
The late submission of TDS statements means the Department is burdened with extra work which is otherwise not required if the TDS statements were furnished within the prescribed time. This fee is for the payment of the additional burden forced upon the Department. A person deducting the tax (the deductor), is allowed to file his TDS statement beyond the prescribed time provided he pays the fee as prescribed under section 234E of the Act. In other words, the late filing of the TDS return/statements is regularised upon payment of the fee as set out in section 234E. This is nothing but a privilege and a special service to the deductor allowing him to file the TDS return/statements beyond the time prescribed by the Act and/or the Rules. We therefore cannot agree with the argument of the Petitioners that the fee that is sought to be collected under section 234E of the Act is really nothing but a collection in the guise of a tax
Rashmikant Kundalia vs. UOI (Bombay High Court)
S. 234E: The late filing of TDS returns by the deductor causes inconvenience to everyone and s. 234E levies a fee to regularize the said late filing. The fee is not in the guise of a tax nor is it onerous. The levy is constitutionally valid
The late submission of TDS statements means the Department is burdened with extra work which is otherwise not required if the TDS statements were furnished within the prescribed time. This fee is for the payment of the additional burden forced upon the Department. A person deducting the tax (the deductor), is allowed to file his TDS statement beyond the prescribed time provided he pays the fee as prescribed under section 234E of the Act. In other words, the late filing of the TDS return/statements is regularised upon payment of the fee as set out in section 234E. This is nothing but a privilege and a special service to the deductor allowing him to file the TDS return/statements beyond the time prescribed by the Act and/or the Rules. We therefore cannot agree with the argument of the Petitioners that the fee that is sought to be collected under section 234E of the Act is really nothing but a collection in the guise of a tax
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