Non deduction of TDS on advance payment

Dear Ayesha,

Interest @ 1% /month will be attracted since TDS is to be deducted on earliest of payment or credit...

So kindly deduct TDs and pay with interest
 

Thank you friends for suggestions!!!

Can you suggest me do I need to revised TDS returns for last quarters (Q1 & Q2) in which my client has paid advance on which TDS is not deducted.

Thanks again.

As you are going to deduct tax now. Take it in current quarter return.

Dear Ayesha,

No need to revise earlier returns since there was no error in the returns the only thing was tax had not been paid earlier..

Amir, i have a question - Can it be a valid plea if someone failed to deduct tax at the then applicable rate and deducting tax at the present applicable rate with payment of interest? Let me explain suppose one person failed to deduct tax on rent of August'09 say 10% , on identifying the mistake he wants to deduct now but at present the applicable rate is 2%, I have no issue about the payment of interest. But are we legally correct to deduct tax at 2% instaed of 10%? your views please.

Dear Sir,

For me, Tax is to be deducted @ 10% in ur example.

Important thing is -

Rates in force at the time when the deduction was due and not when deduction was actually made.

true. thanks Amir.