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Tds

TDS 976 views 4 replies

what if some party does not deduct tds and pay their customers in full and later onrealisation pay it out of their pocket and recover it from their respective clients....

does this attract any interest or something in the same line..........

Replies (4)

It is duty of the payer to deduct tax at source at the time of credit or payment & remtit the same to the Cent Govt.  If he has not done this then he is liable for penalty.

The payer may recover the same subsequently from the customer, however if the customer has paid advance tax after considering the non-deduction of TDS by the payer, then the customer shall infomr the payer that he has considered the non-deduction of TDS from his advance tax liability & is not liable to refund the TDS amount back to him.  This may however give rise to certain dispute but th ecustomer is always on the safer side.

No it does not attract any interest ............

However if u didn't deposit the same tds amount on or before the 7 of the following month in which u Deduct the amount ,interest will be attracted ....

Yes it will attract TDS on late deduction of TDS @ 1% p.m. from the date of expense booking to the date of TDS booking...!!!

If tds is not deposited with govt within due date.

Yes it will atrract interest @ 1 % for each month or part their of till the date tds is not recovered from customer..

And once such tds amt recovered from customer and then not paid to govt then interest will be atracted @ 1.5% for each month or part thier of till the time it paid to govt.


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