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Tds on courier

P.Mishra (Accountant) (155 Points)

05 June 2013

I have contract from first flight courier service pvt ltd, f.y. 2012-13. total courier exp (first flight) Rs. 156000 in f.y. 12-13. problem is that I have not deducted tds from first flight in whole year and submitted tds return of last qtr..what' s the solution..? can I post deduct entry in 31 March and deposit the tds amount in June and revise tds return, what's the amount deposit for tds (tds with interest) plz help me..

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4 Replies

Sonam Bidasaria (CA) (770 Points)
Replied 05 June 2013

First of all, u will have to check on which date payment to First Flight Courier service got exceeded from Rs. 75000/-.

Say, Till 24/07/2012, you had paid Rs. 70000 to courier company and the next payment was Rs. 15000 on 15/11/2012. So liability to deduct TDS on 85000 (including previous payment) arose on 15/11/2012.

Now, Pass the TDS deduction entry on 31.03.2013 and Pay the entire TDS along with interest on 5th June, 2013 (assuming).

TDS to be deducted on Rs. 85000 = 1700 (85000*.02)

Interest will be calculated in two parts:

Part - 1: at one per cent for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted (15/11/2012 to 31/03/2013) = 1700*.01*5 = Rs.85

Part - 2: - at one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid (31/03/2013 - 05/06/2013) = 1700*.015*4 = 102

Total Interest - 85+102 = 187

This is only one part of calculation. Now you will have to do the calculation in the manner described above for all the subsequents payments individually, as the "date when TDS was required to be deducted" varied with every payment.

Sonam Bidasaria (CA) (770 Points)
Replied 05 June 2013

I can simplify it liitle bit more for you.

Part 2 interest calculation will be (156000*.02)*.015*4= Rs 187.20, if you will show TDS deduction in the month of march and payment of TDS in the month of June.

And now you will have to calculate th PART 1 interest according to your payment schedule

P.Mishra (Accountant) (155 Points)
Replied 06 June 2013

thanks for solution... as per assuming 15/11/12. - 85000 paid and the other courier bill amount as 31/12/12. - 16000 31/01/13. - 15000 28/02/13. - 15000 31/03/13. - 14000 what's the amount of total tds liability with interest should be deposit? plz solve this query.. thanks in advance