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penalty for TDS

06 April 2018

If i pay Rs:- 200000.00 to contractor(construction) on 10 Jan 2018 and bill received on 31 march 2018. when should i pay tds for that? on next month of payment(7th feb) or after 31 march?. And if not paid on as per rules what is penalty for this? please clear my doubt

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3 Replies

Langesh Siva (Accounts Manager) (164 Points)
Replied 06 April 2018

Hello sir,

Whether the payment or invoice whichever is earlier you have to deduct TDS and TDS is to be paid by 7th of the following month. For month of March the last date of deposit is 30th April.

Section	Nature of Default	Interest subject to TDS/TCS amount	Period for which interest is to be paid
201A	Non deduction of tax at source, either in whole or in part	1% per month	From the date on which tax deductable to the date on which tax is actually deducted
201A	After deduction of tax, non payment of tax either in whole or in part	1.5% per month	From the date of deduction to the date of payment

Amit Sharma (Owner) (104 Points)
Replied 06 April 2018

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Miss Mansi Bhojani (Practicing Chartered Accountant) (1693 Points)
Replied 06 April 2018

Tds is to be deducted on payment or due basis whichever is earlier. For late deduction the interest is 1% pm or part of month from the date on which it was deductible to date of deduction and if tds is paid late then interest @ 1.5% pm or part thereof from the date of deduction till date of payment.