How to calculate the tds & late payment interest

TDS 2961 views 3 replies

Please tell how calculate the TDS & Interest on Late payment of TDS....

Replies (3)

dear,

say for an example following details are there:

1. Agreement provide professional services. Fees charged Rs.60000

2. Service tax extra as applicable.

Tds will be deducted on Rs. 67 416[ 60000+12.36%of 60000 = Rs. 67 416]. This bill is say for professional service.

hope it will clear your doubt.

TDS is required to be deposited with Government within 7 days from the end of month.

thanks

chirag.

If a person fails to deduct the whole or any part of the tax at source, or, after deducting, fails to pay the whole or any part of the tax to the credit of the Central Government within the prescribed time, he shall be liable to action in accordance with the provisions of section 201. Sub-section (1A) of section 201 lays down that such person shall be liable to pay simple interest

 

Example of Interest Calculation

Date Of Payment

Date of Deduction

Due Date

Date of Deposit

Delayed Deposit

Delayed Deduction

       

Months

Rate

Months

Rate

01/04/2010

01/04/2010

07/05/2010

09/05/2010

2

1%

-

-

09/04/2010

09/04/2010

07/05/2010

09/05/2010

1

1%

-

-

01/07/2010

04/08/2010

07/09/2010

07/09/2010

-

-

2

1%

01/07/2010

04/08/2010

07/09/2010

15/09/2010

2

1.50%

2

1%

 

Interest is to be calculated for every month or part of a month comprised in a period, any fraction of a month shall be deemed to be a full month The amount of tax, penalty or other sum in respect of which such interest is to be calculated shall be rounded off to the nearest multiple of one hundred rupees and for this purpose any fraction of one hundred rupees shall be ignored and the amount so rounded off shall be deemed to be the amount in respect of which the interest is to be calculated.

 

Is there any late fees payable?


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