Late deduction of tds which a.y. to select in challan ?

 

Hello everyone,

one of our client has made payment of rs.100000 as professional fees on 31/03/2011 but has not deducted the tds.

they now in May 2012 want to deduct the TDS of Rs.10000 

1. kindly let me know the interest. i think it will be 1% pm on late deduction.

2. also let know we should select a.y. 11-12 or a.y. 13-14 in challan while making payment of TDS ?

3. should it be treated as prior period item ?

 

Replies (2)

Hello,

A.Y.2011-12 would have to be applied. Due date for payment of TDS is 30/04/2011 for 4th Quarter of A.Y.2011-12.

Interest rate is 1.5% per month. from 31/03/2011 to now (21/05/2012). i.e. total 15 months.

So. Interest amount=10000*1.5%*15= Rs.2250.00

1) Interest is 1% pm or part of the month for late deduction.

2) A.Y. 2013-14 in the year in which it is deducted.

3) There is no prior period item as there is no mistake in booking expenses.

4) If the expenes was already provided in the books in earlier F.Y. and it was disallowed for non deduction of tds then there will be deferred tax assets in that year and in f.y. 2012-13 there will be reversal of such Deff Tax Assets. But in this case it Interest on tds is 1.5% p.m. and A.Y. 11-12

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