Tds on bymistakely paid to vendors

others 290 views 2 replies

keval gandhi

Job in Ca firm

69 Points Joined February 2013

Dear All,

I have made the payment bymistakenly to vendor in the month of March 2017. Now i am adjusting bymistakely paid against Invoice raised by vendor in the month of May 2017.So my question is i have to pay tds in the month of March,2017 itself?

Replies (2)

Baljeet Singh

CA B.Com (H)

954 Points Joined March 2012

Hi Keval,

This is case of TDS not deducted and not deposited.

Thus the actual deduction should have been in March but it is being deducted in May.

You have to pay interest at 1% per month for March, April, & May i.e. 1x3=3%; provided you deposited the TDS + interest in May itself.

If you pay the above TDS and Interest in June, the interest will be payable for 4 months. 1x4% = 4%.

Let me know if you still have doubts.

CA Bhargav Nathwani

CA in Practice

8307 Points Joined August 2012

Originally posted by : Baljeet Singh
	Hi Keval, This is case of TDS not deducted and not deposited. Thus the actual deduction should have been in March but it is being deducted in May. You have to pay interest at 1% per month for March, April, & May i.e. 1x3=3%; provided you deposited the TDS + interest in May itself. If you pay the above TDS and Interest in June, the interest will be payable for 4 months. 1x4% = 4%. Let me know if you still have doubts.

Agree with above answer..

TDS is dudctiable at the time of payment or entries in the books of accounts whichever is earlier except few cases like salaries. There is NO exception like payment by mistake. You have to suffer interest on TDS.