Friends, now a days TRACES is issuing demand notices related with E-filing of Qtly TDS returns.
In some cases, if TDS payment is late then Interest is charged. We have to pay it.
Now, my problem is, (1) we have to file NIL E-TDS return if any sum has been paid, for example, payments to Transporters for Motor Freight in excess of limits specified in rules. Here, I am not required to deducts TDS, but as some payments are in excess of specified limits, I have to submit NIL E-TDS return. Likewise, persons from whom 15-G & 15-H were recd, Interest was paid without deducting TDS as such. These transactions were also to be reported by filing NIL E-TDS return. TRACES has issued demand notice after calculating TDS on these payments, whereas I was not required to deduct TDS at all.
(2) If such NIL return was filed late, then what will be position as regards to daily penalty of Rs.200/-. For example, if I file return late by 5 days, then penalty will be 5*200=1000 Rs. & TDS NIL. How can penalty exceed Tax Payable as such?
Pl give your views on both these points.
T & R
KP
CAclubindia
