Dear All,
I have a small query regarding TDS deduction and interest liability over it.
TDS is under section 194J
earlier small bills were raised but limit not reached to 30,000 Rs
Now a single bill of 33,000 has been added so TDS liability has risen, So the same deducted TDS if I am paying well within time so no Interest will be there but question is that
whether TDS on earlier bills which now i will deduct, do i need to pay ineterest on it?
Yogesh Bhandari
(CA FINAL Student)
(429 Points)
Replied 03 January 2012
No Interest on TDS to be paid on earlier payments which will you now deduct.
GEETA MISTRY
(ca final Student)
(171 Points)
Replied 03 January 2012
as if u deduct tds late then interest liability arises but on earlier bill there was no tds liability so que of interest not arises..
CA Neil Ganatra
(Partner - Gautam Joshi & Co.)
(871 Points)
Replied 03 January 2012
Liability to make TDS arises only when limit prescribed under the Act i.e. Rs. 30,000/- is exceeded. Till that time there is no liability of TDS. However once the limit is exceeded then you'll have to make TDS on whole amount. like in your case you'll have to now make TDS on Rs.33000 + amount of earlier bills. If you do so there is no liability of interest.
deepak
(C.A & C.S Final)
(63 Points)
Replied 04 January 2012
If the aggregate amount of payment made/credited or likely to be paid/credited does not exceed Rs.30,000/- in a financial year (from 1.7.2010). It was Rs.20000 previously.
So the time you have crossed the aggregate limit of Rs 30,000/-,you will have to deduct TDS on the earlier Bills on the same date and pay the some till the upcoming Due date of payment of T.D.S.
and If you have not paid the above TDS on the Due Date ,then you will be charged Interest @ 1.5.%p.m,as the case may be.
Brijesh Nanda
(Accountant)
(49 Points)
Replied 04 January 2012
The Liablity to Deduct Tds arise when u Reached to said Amount as in ur case is 30000/- but when u had raised the Bill amounting crossing the limit , then u have to deduct the tds on whole amount pertaining to that F.Y. . There is no need to pay Interest on Tds as at that time u were not liable
CAclubindia
