Dear All,
Please guide me on the following issue:
A company has received a bill of Rs. 18000 for vehicle running expense during April. The Company did not deduct TDS as limit of 30,000 as well as 70000 was not applicable at that time.
Now on January end the contractor has raised a bill of Rs. 48000 and the company expects that the transaction with the contractor would exceed 70000 and hence it deducted TDS on the current as well as the previous amount.
Please guide me with reference to case laws (if any) whether interest on delay deduction of TDS applicable on earlier sum, i.e. 1% per month.
Regards
CA.Suman Sharma
Interest on Delayed TDS Deduction: Aggregate Payments Exceeding Rs. 75,000 and Section 201(1A) Implications A company received a bill for Rs. 18,000 for vehicle expenses in April and did not deduct TDS, as it did not exceed the applicable limits. Later, a bill for Rs. 48,000 was issued, prompting the company to deduct TDS on both amounts, anticipating the total would exceed Rs. 70,000. The discussion revolves around whether interest for delayed TDS deduction applies. Responses highlight that TDS should be deducted if a single payment exceeds Rs. 30,000 or if aggregate payments exceed Rs. 75,000 annually. Interest may be applicable from when TDS was initially due, as per Section 201(1A). (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
