payment of TDS

The thumb rule is 'paid or credited whichever is earlier'.

Hence, in this case, there is a default. 

Both the Non Compliances would be applicable:

Late Deduction of Tax: As it is deducted on 16^th Aug

(instead of 10^th July i;e Bill Credit Dt)

Late Deposited of Tax: As it is deposited on 7^th Sep

(instead of 7^th Aug)

dear prateek ,

you have attracted both the non compliance as mentioned by you,

beacuase thare is a basis rule that is "Amount Paid or credited which ever  is earlier"

and in this case amount credited is earlier.

now you will have to deposit 1% simple interest on the amount on or before 7th september.

Dear vipin

Interest has changed from 01.07.10 onwards. Interest will be 1.50%

hey pankaj interst on TDS 15.% monthly from 01.07.2010. is it?

Its 18.00 %....

in ur case both deduction of tds & deposited date both were non-compliances. so, u have to pay  interest @ 1.5% p.m. i.e. 18% p.a. i.e. from 01.07.2010 and upto 30.06.2010 int. @ 1% p.m.  i.e. 12% p.a.

 Dear

I Dont know whether it is correct or not plese reply

When we make & deduct  TDS Entry in the account on the basis of bill , we must pay  before 7th in next month

or

When we paid the amount to party , we must deuct and pay  before 7th of next month....

otherwise it attract interest 1.5%

and non payment of TDS will attract imprisonment or penality

for eg: u/s-194C:- if bill arises on the date of 25.08.2010. and actual payment was made in 18.09.2010.

at wat time tax is to be deducted at source:-at the time of payment or at the time of credit whichever is earlier. in the above example earlier date is 25.08.2010, so u have deduct tds as on 25.08.2010 and which is to  the credit of Central govt.  within one week from the end of the month in which tax is deducted.so before 07.09.2010 it is paid to central govt.

defalut  u/s- 201(1A) is attracted in 2 cases:-

1.if the person responsible for deduction of at source does not deduct, wholly or partly.

2. after deducting tax, he failes to pay the same as required by the Act.

Int is calculated @ 1.5% p.m.(or part thereof) it is payable from the date on which such tax was deductable to the date on which the tax is actually paid. i.e. from 25.08.2010 to 07.09.2010.

hope it is understand to u saveesh sir.

siri.........

in case of failure  to  remitt the tax deducted, rigorous imprisonment ranging from 3 months to 7 years and fine can be levied.

Alter the  date of booking of your bill from  July to August. ooopz

(only if you have not made payment for that bill in July)

thnx guys...for ur anwrs..