interest on TDS

If 1st bill is of Rs.10000 issued in the month of April  and no TDS was deducted as there was no obligation but subsquently one more bill was issued of Rs.50000 in the month of Dec.This time TDS was deducted on both 60000(10k+50k) but do we have to pay interest on tds of 10k for delay in deposit of TDS?

 

pls ans with reason 

Replies (7)

Yes, you going to pay interest @ 1%  each month or part of the months on TDS on 10k. This is your safe to paying the interest, otherwise at the time of audit u/s 44AB or closing of assessment this will creat an issue for disallowance of expenses of Profit & Loss account of the company.

For my suggesion better you will pay a interest for TDS on 10k......

Aasita,

yes interest has to be paid in 10k for delay in deposit of TDS

No need to pay any interest. its interest rise when second bill comes. so pay intt as regular.

if regular party and interest / tds deducted in last year the pay interest on tds of late payment of 10000/-

 

Provisions of sec.194C states that if the aggregate amounts of such sum credited or paid or likely to be credited or paid during the financial year exceeds Rs.50K, TDS is required to be made.

Hence if in a any particular case there is a preceedence from previous years data that payment to a specified party is bound to exceed the exemption limit, then it would construed as a default and interest would be levied.

In absence of any preceedence no interest is attracted on the initial 10K

hey aasita,

CA.Rupesh joshi`s Advice is Correct,I AGREE WITH HIM.

 

DARSHI

I fully agree with RUPESH

FULLY AGREE WITH RUPESH JOSHI'S COMMENT

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