Interest on TDS

TDS 713 views 9 replies

Manoj Mhatre

Practising Chartered Accountant

68 Points Joined April 2009

QUERY REGARDING TDS DEDUCTION & INTEREST THEREUPON

IN THE MONTH OF NOV-09, ABC LTD HAD PAID PROFESSIONAL FEES OF RS.1,00,000/- WHICH WAS LIABLE FOR TDS DEDUCTION ON WHICH NO TDS WAS DEDUCTED OR PAID, THE SAID EXPENDITURE HAS BEEN DISALLOWED U/S 40(a) (ia) FOR THE F.Y.09-10.IN THE NEXT FINANCIAL YEAR ON THE AFORESAID PAYMENT ABC LTD DEDUCTED & PAID TDS AT THE RATE OF 10% (I.E RS.10,000/-) IN OCT-10.

OUR QUERY IS

1) ARE WE LIABLE TO PAY INTEREST ON TDS OF RS.10000/- PAID FOR THE PERIOD NOV-09 TO OCT-10?

IF YES, THEN WHAT IS THE RATE OF INTEREST APPLICABLE?

Replies (9)

Aditya Maheshwari

CA in Practice

35867 Points Joined June 2009

Yes you are liable to pay interest for delay in deduction of tax at source @ 1% p. m. i. e. 11% in your case.

shailendra

Accounts Executive

128 Points Joined August 2009

YES, YOU ARE LIABLE TO PAY INTEREST @ 1% ON PAYMENT OF RS.1,00,000/-SO, IN YOUR CASE TDS LIBILITY WILL BE FOR 11 MONTHS, AS UNDER:-

TDS=10.3% of 1,00,000=10300/-

INTEREST=11% of 10300=1133

SO, TDS WITH INTERST=10300+1133=11433/-

Rahul Agarwal

Future CA

217 Points Joined December 2007

Mr. Shailendra is absolutely right

M .K. Jha

CA Final

484 Points Joined February 2010

ya sailendra is right

CA Mudit Agarwal PGDFM,MCP,IFR

Dy. Manager (Taxation)

289 Points Joined October 2010

yaaa

Mr. Shailendra is right.

Interest will be charged @ 1% per month. i.e. 11% in your case......

Santhosh Poojary

SIEMPRE AHÍ PARA TI

15607 Points Joined December 2008

Thanks to all

NITIN BHATIA

CA FINAL

188 Points Joined September 2010

THANKYOU VERY MUCH

Guest

Originally posted by : shailendra
	YES, YOU ARE LIABLE TO PAY INTEREST @ 1% ON PAYMENT OF RS.1,00,000/-SO, IN YOUR CASE TDS LIBILITY WILL BE FOR 11 MONTHS, AS UNDER:- TDS=10.3% of 1,00,000=10300/- INTEREST=11% of 10300=1133 SO, TDS WITH INTERST=10300+1133=11433/-

TDS=10% of 1,00,000=10,000/-

INTEREST=11% of 10,000=1,100

SO, TDS WITH INTERST=10,000+1,100=11,100/-

I think S.tax is 10.3% nothing is TDS.

Any comments are welcome in my post.

Thanks

shailendra

Accounts Executive

128 Points Joined August 2009

Originally posted by : Rahul Sharma
	Originally posted by : shailendra YES, YOU ARE LIABLE TO PAY INTEREST @ 1% ON PAYMENT OF RS.1,00,000/-SO, IN YOUR CASE TDS LIBILITY WILL BE FOR 11 MONTHS, AS UNDER:- TDS=10.3% of 1,00,000=10300/- INTEREST=11% of 10300=1133 SO, TDS WITH INTERST=10300+1133=11433/- TDS=10% of 1,00,000=10,000/- INTEREST=11% of 10,000=1,100 SO, TDS WITH INTERST=10,000+1,100=11,100/- I think S.tax is 10.3% nothing is TDS. Any comments are welcome in my post. Thanks