TDS payment delay interest

When TDS is deposited late, Interest @ 1% per month is charged on it .Part of the month is considered as full monyh for  this purpose.

eg:

Bill date 8th july

TDS payment made on 5 the sept

int for 8 july - 7 aug  - 1 month

8 aug - 7 sept - 2 month 

or whether to count as july, aug sept - 3 month

so whether int for 2m or 3m ??

interest is payable for 2 months (august and september)

As per Sec.201(1a), One needs to calculate interest from the date of tax deductible to the date of payment of tax  @ 1% for month or part of the month so in your case 2 months int. requires to be calculated

sir if bill is of date 2st july and tds paid on 6th of september then the time peroid is 2 months and 4 days............so we should take int. of 2 mths. or 3 mths.

contrary is the tds is paid on 1st of september will the answer be different..........

My dear friends,

If bill is passed on 5 th July, then the due date for deposition of the tds with the government is 7 th of August.

So, if you delay the deposition and pay after 7 th August , then interest @ 1 % per month has to be paid. And a part of the month is considered as a full month.

So, if you deposit tds on 13 th december , then tds has been delayed by 4 months and 7 days and interest for 5 months shall be paid on the same.

Nikunj Rathi

Sir, I Have a small querry on late deposit of TDS. say a Private Limited Company credited Bill of Rs. 50000/- on 16 Th August, 2010 and deducted TDS on the same day @ 10% on Rs. 50000/- i.e. Rs. 5000/- under section 194 J, But Company want to deposit TDS on 28.10.10 , Please let me know how much Interest shall be deposited - amount , Rate of interest & period .

Shall highly be appreciated for your kind support.

Regards

Anil Jain

9312640067

akj9312640067 @ gmail.com

Sir, I Have a small querry on late deposit of TDS. say a Private Limited Company credited Bill of Rs. 50000/- on 16 Th August, 2010 and deducted TDS on the same day @ 10% on Rs. 50000/- i.e. Rs. 5000/- under section 194 J, But Company want to deposit TDS on 28.10.10 , Please let me know how much Interest shall be deposited - amount , Rate of interest & period .

Shall highly be appreciated for your kind support.

Regards

Anil Jain

9312640067

akj9312640067 @ gmail.com

Hi,

I agree with NIKUNJ RATHI