TDS Liability 2021

Page no : 2

Prathyusha Varma (ArticleShip) (393 Points)
Replied 26 April 2021

Thanks lotus and Poornima. Please enlight if missed any

Lotus Agrawal (Practice) (1356 Points)
Replied 26 April 2021

Actually one thing is left

Prathyusha Varma (ArticleShip) (393 Points)
Replied 26 April 2021

What's that ? please share

Lotus Agrawal (Practice) (1356 Points)
Replied 26 April 2021

If you book tds liability in april, as you have not made provision of tds in march, u need to pay interest for DELAY IN DEDUCTION of tds @ 1% p.m. but interest for DELAY IN PAYMENT of tds will not arise if u make payment on the same day on which you book the tds liability.

Prathyusha Varma (ArticleShip) (393 Points)
Replied 27 April 2021

Rightly said but TDS deduction arises date of payment or date of entry which ever is earlier, correct ?

So based on above rule my date of entry is in April 2021 and payment will be may 2021, thus my tds Liability will arise on or before 7th May know !

is it mandatory to deduct TDS on general provisions also ? or TDS to be deducted on all provisions even if we don't know amount exactly also?

Lotus Agrawal (Practice) (1356 Points)
Replied 27 April 2021

If you have not received the invoice/amount of invoice not known/provision for expense not made and you r recoding the transaction in april, then yes due date is 07th May.

But if provision for expense had been made in march but tds was not provided in march and you are recording tds in april then due for payment is 30th april and if u make payment on or before 30th april no interest on payment will be required but still interest for delay in deduction would arise. This is bcoz u have made provision in march, even if exact value is not know/party is not known/transaction recorded in suspense account etc.

Prathyusha Varma (ArticleShip) (393 Points)
Replied 27 April 2021

So suspense account will be treated like party account impliedly. So while filing TDS return we dont need to input invoice details ?

Lotus Agrawal (Practice) (1356 Points)
Replied 27 April 2021

But in this case u had made provision for exp in march, recorded tds in april (means deducted tds in april) so interest for delay in deduction would arise.
This is bcz u have made provision for expense in march but not deducted tds as u didn't know the exact value and now deducting it in april, so liability will arise from march.

Prathyusha Varma (ArticleShip) (393 Points)
Replied 27 April 2021

Okay Noted Lotus. What if one client didn't provide TDS for all the 15 vendors that he has put in provsion list. out of 15- 6 are 194J, 6 are 194c, 3 are 194I...Now how interest on delay will be charged ? if they deducted in April 2021

Lotus Agrawal (Practice) (1356 Points)
Replied 27 April 2021

Interest will be calculated @ 1% on the AMOUNT OF TDS. you can calculate it separately for each transaction or collectively for all transactions. It will not make any difference. different sections have no relevance here.

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