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Urgent TDS query

anony (MANAGER) (145 Points)

15 November 2011

DEAR SIR,

WE ARE A MANUFACTURING FIRM & BOOKED AUDIT FEES EXPENSES ON 31.03.2011 FOR65,000/- BUT DID NOT DEDUCT THE TDS ON SAME AMOUNT. OUR BALNCE SHEET HAS ALSO BEEN FINALISED.

CAN I DEPOSIT THE SAME NOW ALONGWITH 1 % INTEREST ON LATE DEDUCTION FOR 8 MONTHS?

WILL I HAVE TO PAY INTEREST ON LATE DEPOSIT OF TDS @ 1.5 % IF I DEDUCT TDS TODAY & DEPOSIT IT ON THE SAME DAY?

WILL THIS EXPENSE (AUDIT FEES) BE DISALLOWED OR NOT?

KINDLY REPLY ITS URGENT.

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10 Replies

valji (Accounts manager-MBA) (2150 Points)
Replied 15 November 2011

you should deduct the same & payement to the govermrnt with interest

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 15 November 2011

Please note that the expenditure booked on last day of March month & if TDS is deposited on or before the due date of filing the return of Invoice the the expenditure won't be disallowed while calculating your tax liability.

But fi the tax is not deposited before filing the return then whole of the expense will be disallowed & will be allowed in the subsequent eyar in whihc the tax is being deposited alongwith interest.

Versatile....... (Chartered Accountant) (82 Points)
Replied 26 November 2011

@ Lalit..since you have booked the whole amount of Audit Fees(inclusive of service tax) on 31.03.2011 therefore you were required to deduct TDS on the same @ 10% & deposit the same before 30th April 2011...now you have not done that therefore you'll have to deduct TDS now while making the payment & deposit the same alongwith interest for late deposit....interest will be calculated as follows:

[(1% from the date on which tds was deductible to the date it was actually deducted) + (1.5% from the date it was actually deducted to the date of payment)]..

since you haven't made any provision for interest on tds in the books for the year ended 31.03.2011 therefore while paying the interest debit prior period expenses instead of interest on tds.....

your balance sheet which most probably would have been signed by now...just see the computation of income working to know whether audit fees has been disallowed or not....

if tds is not deposited before the due date of filing of return then this expense will be disallowed in the current year & allowed in next year as per section 43B of IT Act...!!!

brahma gupta (article) (81 Points)
Replied 05 December 2011

Hi friends,

I have a problam that I ,( a proprietorship enterprises ), have paid frieght to Transportor of Rs. 19800/- without deducting TDS, and transportor has not provided his PAN NO. This is only one trasaction with him in the year. please give your suggestions.

Tejashri (Assistant finance manager ) (28 Points)
Replied 17 December 2011

HI i just want to confirm the whether TDS on contractors payment on Freigfht & Forwarding is to be deducted inclusive of Service TAX charged on invoice?

Regards,

Tejashri.

nitin suvarna (C.A FINAL) (828 Points)
Replied 17 December 2011

mr. brahma ,

tds needs to be deducted @ 1% for payment made to an individual or else (other than individual /huf) it is 2%. But since no pan is provided it is 20%. u need to also check for limits mentioned ,i think it is rs 30000 for single payment.

nitin.

nitin suvarna (C.A FINAL) (828 Points)
Replied 17 December 2011

mr. brahma ,

nitin.

nitin suvarna (C.A FINAL) (828 Points)
Replied 17 December 2011

miss tejashri,

yes the tds deduction needs to be made on amount inclusive of service tax .

nitin.

SUNIL (ACCOUTANT) (167 Points)
Replied 17 December 2011

Hi Friend

Tds should be deposited as on date but interest charges 1% per month or part of the month will be payable.

Expenses will not allowed for the year in which the expenses incurred.

Thanking You

Sunil

SHRUTI BHAT (Accountant) (21 Points)
Replied 24 December 2012

Our Copmpany received the Default notice on 27-07-2011 for the F.y 09-10.But till now no one is create the online a/c and not checked the default notice.Now i am create a/c and login. I have observed default notice and download the default notice.Default notice shown as Paid some value of amt.I wil pay the default notice amt.Should i pay the interst amt from july 27th to till date and what is the interest ? and how to calculate that