We are Pvt Ltd co. IT department has raised tds default interest on late payment of TDS. We have deducted TDS on commission 30th June 2012 & paid the same on 14th July 2012. So interesrt should be charged for 14 days. But IT department has charged us interest for 2 months @ 1.5% per month. Is IT department calculation is right? How can I challange IT department calculation if it is wrong?
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Tds deafault
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TDS interest is require to be calculate on Monthly Basis not on Daily basis. If you fail to Pay TDS even for 1 Day then you have to pay Interest for Whole month.
Interest Calculation Start not from the Due Date but from Date of Booking or Deducting Tax.
In Your Case you have Deduct TDS on 30th June & Paid it on 14th July,
Then you are liable to pay interest for Part of June- One Month
14 Days of July- Again One Month
That is for Two Month
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