What is the last date for FY 2009-10 for TDS payment on professional service, rent and salary?
If the company hasn't paid TDS on monthly basis and has accumulated large debt related to TDS payment, is it possible to setup an installment plan for TDS payment? The company is struggling with Cash inflow but hope to recieve a huge cash inflow by end of May and June.
Is it also possible to setup installment plan for accumulated debt on Service tax payment - for the same reason?
Jack-
Jack,
In all other cases, except in case of salary, where amount is credited to the account of the payee as on the date up to which accounts of the payer are made, tax is required to be deposited withinin 2 months from the month in which the income is credited. In all other cases, tax is required to be depostied within 7 days from the end of the month in which the deduction is made.
There is no provision under I. Tax Act, which offers you instalment facility for making payment of TDS.
Similar is the case with service tax. You have to pay what you have collected on behalf of the govt. Its not prudent to use tax funds for business purposes.
Severe interest, penal provisions get attracted in your case.
If the company has paid TDS on 27 mar instead of 7 m ar, what will be the no. of months for calculation of interest on delayed payments?
Nandhini R
Interest on delay in depositing taxes deducted is 1% per month or part of the month (upto30/06/10)
and 1.5% pm from 1/7/2010
In your case interest would be 1% of the TDS amount as the delay is for a period of less than a month
Thanks Rupesh
If the provision is created in march, then TDS can be remitted upto 30.09.2010 [within due date u/s 139(1)]as per the recent amendment.
Divya,
as per the recent amendment the whole year's TDS can be remitted within 139(1) due date for allowability of expenditure..
But the above provisions are regarding payment of interest for late remittance to govt..They are correct with regard to interest pyts for delayed remittance., however expense will be allowed if remitted within 139(1) due date..
ya i too agreed Mr.Bala.
CAclubindia
