LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Interest on TDS

CA-ASPIRANT (CA-STUDENT ) (650 Points)

30 May 2009

I would like to know if JOB WORK TDS DEDUCTIBLE U/S 194C

till December,08

we received bill for job work for Rs. 15000+16000+4000= 35000

we did not deduct TDS on bills totaling 35000

On 31 January, we received bill for Rs. 19000

Now total turnover exceed Rs. 50000/- and

we deduct TDS ON 54000/-(35000+19000)

Should we pay Interest on Rs. 35000

Please answer it immediately.

Reply
Follow
Share

5 Replies

sudhir gautam (CA Final) (145 Points)
Replied 30 May 2009

Dear Amritesh

before 31st january we are not liable to deduct TDS and after 31 january we deducted the TDS on whole amount therefore we are not liable to pay intrest on TDS.We are liable to pay intrest when we have deducted the amount or liable to deduct the TDS but not deducted i.e defaulting in depositing the TDS amount

NIRMAL SINGH (SERVICE) (25 Points)
Replied 31 May 2009

Hi Amritesh,

You are doing right..... Now you have to dedect the TDS on 54000. since, the limit has been crossed after receiving the bill a sum of rs 19000.

Regards,

Nirmal - CWA

CA RAHUL GOYAL (CA) (97 Points)
Replied 31 May 2009

Ya you have to deduct TDS on Rs 54000/-. You dont have to pay any interest for late payment.

sachin gupta (studing) (31 Points)
Replied 01 June 2009

Originally posted by :Rahul Goyal
"	Ya you have to deduct TDS on Rs 54000/-. You dont have to pay any interest for late payment.	"

excuse me boos u have to deduct tds And also u have to pay intesest on rs.35000.

as per the incomet tax act we have to deduct tds at the time of payment or the credit to account whichever is earlier.

the language of the act is "where the amt. of such sum or, as the case may be, the aggregate of the amounts of such sums CREDITED OR PAID OR LIKELY TO BE CREDITED and paid during the financial year.

the word LIKELY shows the liab. of interest.