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Shehbaz (Accountant) (125 Points)

26 April 2013  

MR. A is a  Professional issue 4  bill of rs 25000 to a co. in the month of april, may, dec, jan. The accountent make a chaque Of Rs. 25000 without deduting tds in the mounth of april and may.

and in the month dec accountant deduct TDS to OF rs 7500 (i.e 2500 in the april bill+ 2500 in the may bill+ 2500 in the current bill) and issue a cheque of Rs. 17500 (i.e. 25000-7500) .

In the month of dec the accountent make a cheque of RS. 22500(i.e 25000-2500).


So Q is the accountent do right job or Wrong?


 12 Replies


Technically what the accountant is doing is correct (atleast he is deducting TDS)... But this amounts to delayed TDS payments.... TDS has to be on credit or payment whichever is earlier

1 Like

S.Satya (CA-FINAL STUDENT) (68 Points)
Replied 26 April 2013

you done correct  but you need to pay interest 1.5% per month for delay of deposit of TDS

1 Like

Girisha.a.v (Student) (51 Points)
Replied 26 April 2013

what is done by accountant is correct. and interest is also not payable. because he deducted the TDS after the limit (i e rs.75,000) is exceded.
1 Like

Sampurna Nand Awasthi (ACCOUNT OFFICER) (33 Points)
Replied 27 April 2013

Girisha !  cut off Amount of professional services is 30000/- not 75000/- so interest payment mendatory.

1 Like

CA Anushree jain (CA) (1526 Points)
Replied 27 April 2013

if aggregate amount payable  is 75000  or more to a single person only then tds is deductible and the limit for 30000 is that if a single bill's amount is 30000 or more then deduction is mandatory even though aggregate is not 75000 so what accountant did is correct

Shah Umang (Asst manager Accounts) (34 Points)
Replied 28 April 2013

Mr .Sampurna Nand Awasthi is correct as limit U/s 94- J is 30000 & not 75000 so so interest payment mendatory.

Sonu Kumar (Account Manager) (661 Points)
Replied 28 April 2013

Agree With Mr. Sumpurna Nand Awasthi

Replied 29 April 2013

Agree with Anushree....

Hemant D (na) (303 Points)
Replied 29 April 2013

194J requires application of TDs the moment one crosses a threshhold of Rs. 30000. In the instant case, TDS should hav e applied when the May bill was due for payment as it exceeded the threshhold. Hence TDS should have been on Rs. 50000 for April & may. Since it has been deducted in Decemebr, interest would be leviable & payable mandatorily. Limit of Rs. 75000 is applicable only in case of 194C.

paresh (CA practice) (26 Points)
Replied 02 May 2013

Accountant has correctly deducted TDS, also there is no liability for payment of Interest


Disha Rajeshbhai Raichura (propritor) (22 Points)
Replied 02 May 2013

If we pay TDS by online SBI A/C on 30th april but authorization done on 2nd may whether it attracts penalty or not? kindly reply as soon as possible


Uttam (employee) (814 Points)
Replied 02 May 2013

he has to pay interest..and accountant need to change the practise to avoid interest and return has to be filed on time..:)

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