Chartered Accountant
570 Points
Joined April 2008
when tds is not deposited withe the government 1% per month will be the fine. But the payment should be in the financial year. That means if a co deducted tax in april it has to be deposited in the next month. But the co paid in the month of june. It has to deposit the tax amount with the govt with fine. So as the deposit with the govt is in the same financial year the expenditure on which tds dedudted and tax deposited is an allowable expenditure.
But the problem arises at the last quarter only. The Tax deducted in last quarter has to be deposited with the govt by March 31st only. If tax deducted in the march but deposited with the govt in april that expenditure is disallowed