CCI Online Learning
What do you want to learn today?
     
CIBIL

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

TDS not deducted on Sub-Contracted services


Shraddha Sinari   05 November 2019

Shraddha Sinari

 2 likes  70 points

| My Other Post

Our company has hired one consultant on a contract basis with a monthly payment of 60000 per month. Last month i.e. for October 2019 month we forgot to deduct the TDS. What will be charges do we as a company need to pay for not deducting and non-deposoting the TDS on time. 

PHANEENDRA MALLA (CA Practice)     05 November 2019

PHANEENDRA MALLA
CA Practice 
 6 likes  92 points

View Profile | My Other Post

Company should pay Interest @ 1% for Non Deduction from the date of payment to the party till date of deduction (Period should be considered as months even if it is a part month)

For example, Date of payment to the consultant (Net of Tds) is 31.10.2019 and date of deduction of tds (accounted in books) is 05.11.2019, Interest to be calculated @ 1% for two months and tds along with interest to be remitted to government.

Please note, if tds is not remitted to the government immeditely, i.e, by 05.11.2019, additional interest of 1.5% should be paid month wise. 

In our example, if deducted tds is not paid by 05.11.2019 and for suppose, it is paid on 01.12.2019, additional interest @ 1.5% should be paid for two months

avater

Kapadia Pravin   05 November 2019

Kapadia Pravin

 916 likes  14288 points

View Profile | My Other Post

Under section 201(1A)  - to pay simple interest

(i) at 1% for every month or part of the month on such TDS amount from the date on  which TDS was deductible to the date  on which such TDS is deducted; and

(ii) at 1.5% for every month or part of a month on the amount of such TDS from the date on which such TDS was deducted to the date on which such TDS is actually paid.

Such interest, is mandatory in nature and has to be paid before furnishing of quarterly statement of TDS for respective quarter.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Related Threads


Loading

Popular Discussion


view more »



Trending Tags
exams
sebi
corporate law
ca rankholder interview
coronavirus
Union Budget
ca exams
traces
gst return
career
mca
ca students
icsi
cag
newgstreturn
csr
Professional Resource
icai
cbdt
itc
ca exams may 2020
Others
unified portal
taxpayers
dgft

GST Live Class    |    x