Hi.....Kindl;y Answer This
TDS deducted for the Month of April 2010 has been paid on 05th of July 2010 how many months interest to be Levied???
LILLY JEBASELVI (Article Assistant) (58 Points)
02 July 2010Hi.....Kindl;y Answer This
TDS deducted for the Month of April 2010 has been paid on 05th of July 2010 how many months interest to be Levied???
Akhil Gupta
(Manager F&A)
(856 Points)
Replied 02 July 2010
Interst under Section 201(1A) is 1% and is payable from the date on which such tax was deductible to the date on which such tax is actually paid.
However this provision is amended w.e.f. 01/07/2010. Under the amended version, interest will be payable as follows:
1% from the date on which such tax was deductible to the date on which such tax is actually deducted.
1.5% from the date on which such tax was actually deducted to the date on which such tax is actually paid.
Refer para 142.2 of Direct Tax Ready Recknor by Dr. Vinod K Singhania.
The same queries was already discussed in this club on 05 June 2010
CA Ayush Agarwal
(Kolkata-Pune-Mumbai)
(27186 Points)
Replied 02 July 2010
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 02 July 2010
agreed Interest will be for 3 months @ 1.5 % pm
CA Amit Kanani
(Practicing CA)
(338 Points)
Replied 02 July 2010
Interest shall b payable for 59 days.
Tds of april month shall require to be deposited on 7th may, otherwise interest shall b charge @ 1% for month or part of month for period starting from 8th may till date of actual payment of tax. So, for u interest shall b of 59days i.e. 2% of TDS amount. May 24days, June 30days and july 5 days. If this days are 61 then interest shall b 3% bcoz 1% rate is for part of month also.
1.5% rate apply for TDS deducted in month of July and not deposit in time.
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 02 July 2010
Dear Amit,
As per Section 201 part of the month is considered full month for the calculation on interest on TDS.
CA Amit Kanani
(Practicing CA)
(338 Points)
Replied 02 July 2010
yaa, shudanshu i told same u read it.
Venkata Ramana Sriram
(Service)
(119 Points)
Replied 03 July 2010
3% for 3 months (May,June July). July also considered for calculating interest.
paresh
(asst.accountant)
(23 Points)
Replied 03 July 2010
sir ple. give me one exp. for let paid for t.d.s.
Dharmendra Jha
(Asst. Manager Finance)
(100 Points)
Replied 03 July 2010
For Exp.
If u deducted 1000 and the same u have not paid timely its 5th of the next month than your calculation will be for 3month Rs.1030 (1% per month interest) 1000+30 rate of interest has been increased 1 to 1.5%
Dharmendra
(Taxation Accountant)
Vignesh Sundar
(Practicing Chartered Accountant)
(59 Points)
Replied 05 July 2010
TDS should be remiited along with interest at the rate of 4.5% - as described below
April - 1 % per month
May - 1 % per month
June - 1% per month
July - 1.5 % per month >> So total is 4.5%
Interest Should be calculated from actual date of deduction as per section 201, but not from Due date of Remiittance i.e. 7th May 2010. So interest should be paid from April to July (4 months)
Master GSTR-9 and 9C with India's First Unique Live Course with Live practical training
CAclubindia
