What is the rate of interest on late payment of TDS relating to
F.Y.2012-13 ?????????
CA.Varalakshmi.M
(Manager-Finance)
(482 Points)
Replied 05 July 2012
Hi,
If Tds has been deducted but not paid within the due date interest will be calculated as follows.
It is 1.5 % per month or part of the month from the date of deduction to the date of payment.
Mugundan
(Live your Passion)
(249 Points)
Replied 05 July 2012
| Originally posted by : I.S.P. | ||
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Bill amount is Rs. 1250567/- date of bill is 09-05-2012, Date of payment of bill amount without deducting TDS is 17-05-2012. Help me in calculating interest... should i consider the period from the date of bill or from the due date of depositing that TDS amount i.e from 07-06-2012 ???? |
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You are supposed to calculate the interest from June 8th, since you are saying the TDS has not been deducted you are supposed calculate the interest @ 1% per month or part there of on the TDS Amount.. If you have not deducted and paid the TDS means, it will be disallowed in your income from business or profession as per section 40.
As per ur query incase the rate of TDS is 10% means, TDS amount will be Rs.125056/-, Interest will be @ 1% per month for one month (Incase Payment has been made within July 7th) Rs.1251/-.So u must pay Rs.126307/- as TDS including interest.
.
Mugundan
(Live your Passion)
(249 Points)
Replied 05 July 2012
| Originally posted by : I.S.P. | ||
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1% or 1.5% ??????????? |
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Incase TDS deducted and paid the amount to the Party and does not remits the TDS to Central Govt. means 1.5%per month..
and
Incase TDS not deducted but paid the amount to the Party including TDS means u'll be levied 1% per month instead of 1.5%per month
Actually these two rates about one thing, we are not supposed to hold others money.Incase you deducted TDS and didn't remit to Central Govt. means, you are holding other's money so u'll be levied 1.5% per month interest.
Incase if u paid the amount to party without deducting TDS means, you will be levied 1% per month as interest, for failure to deduct the TDS.
kunal
(Founder)
(590 Points)
Replied 05 July 2012
As per Section 201 of the Income Tax Act,1961, if a person fails to make payment of the TDS deducted as required under the Act,he shall be liable to pay interest as below:
1.5 % for every month or part of a month on the amount of such tax from the date on which such tax was deducted t o the date when such tax is actually paid.
However, Interest is to be paid at the rate of 1% for every month or part of a month when TDS which is deductible is not deducted at all.
CA PRAVEEN SINGH
(MANAGER ACCOUNTS)
(2277 Points)
Replied 06 July 2012
| Originally posted by : M.Varalakshmi | ||
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Hi, If Tds has been deducted but not paid within the due date interest will be calculated as follows. It is 1.5 % per month or part of the month from the date of deduction to the date of payment. |
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YES AGREE....
Bharat chandan
(student)
(158 Points)
Replied 06 July 2012
u/s 201 interest is @ 1% per mnth or part of mnth from DATE ON WHICH TDS WAS DEDUCTIBLE to DATE ON WHICH INTEREST WAS DEDUCTED
and interest is 1.5% per mnth from DATE ON WHICH TDS WAS DEDUCTED to DATE ON WHICH TDS WAS ACTUALLY PAID
CA Vishal Jain
(Chartered Accountant)
(137 Points)
Replied 07 July 2012
| Originally posted by : Mugundan | ||
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Originally posted by : I.S.P. Bill amount is Rs. 1250567/- date of bill is 09-05-2012, Date of payment of bill amount without deducting TDS is 17-05-2012. Help me in calculating interest... should i consider the period from the date of bill or from the due date of depositing that TDS amount i.e from 07-06-2012 ???? You are supposed to calculate the interest from June 8th, since you are saying the TDS has not been deducted you are supposed calculate the interest @ 1% per month or part there of on the TDS Amount.. If you have not deducted and paid the TDS means, it will be disallowed in your income from business or profession as per section 40. As per ur query incase the rate of TDS is 10% means, TDS amount will be Rs.125056/-, Interest will be @ 1% per month for one month (Incase Payment has been made within July 7th) Rs.1251/-.So u must pay Rs.126307/- as TDS including interest. . |
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The provisions of section 201(1A) is as under
[(1A) Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct the whole or any part of the tax or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest,—
(i) 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; and
(ii) 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,
and such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200:]
In above mentioned case date of bill is 09/05/2012 and you have paid the bill in full on 17/05/2012 without deducting TDS. If in any future transaction you deduct the TDS on this bill you will pay interest from 09/05/2012 to that date @ 1% p.m. and from the date of deduction till date of payment interest will be paid at 1.5% p.m.
Suppose you deduct TDS on above bill on 07/07/2012 and deposit on 11/08/2012 the interest shall be payable as follows
from 09/05/2012 till 07/07/2012 i.e. 2 months @ 1% p.m. and
from 08/07/2012 till 11/08/2012 i.e. 2 months @ 1.% p.m.
CHINTAN J. SHAH
(CA Practice )
(38 Points)
Replied 12 December 2012
Kindly reply to the below mentioned query.
What is the remedy in the following situation ;
TDS deducted by M/s XYZ Pvt. Ltd. but was wrongly deposited with PAN/TAN of M/s ABC pvt. Ltd.
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