TDS Payment

TDS / TCS 418 views 1 replies

What is the liability of a company if he deposits the TDS in bank account by cheque/cash instead of transfering it online.

Replies (1)

Dear Sanket Sir,

Good question.......!

Personally, I believe there would NOT be any penal consequenses of this....Only thing is Banker would not easily accept this & would make noise....

But On ur interesting query I think treatment would be as follows -

If for a moment we assume that Banker accepts this then Sec 201(1A) provides for the interest where TDS is not paid "AS REQUIRED UNDER THE ACT"

So ur present case would fall in this since TDS has not been paid in a manner as stated by the Act,

But Wait here Computation provisions would not allow the levy of Interest if we assume there is no lag in the payment, since Interst is to be levid for the period of default, & there is no Default as such.....

Further, Sec 201(1) makes a person as "assessee in default" where again TDS is not paid "AS REQUIRED UNDER THE ACT"

& Sec 221 provides for the penalty of amount eqivalent to "Tax in arrears" now here also Computation of penalty would not allow the same to be levid since there are no Tax in arrers


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