Show cause reply U/s 276B

[Guest]

One of my client has recieved a show cause notice U/s 276B of depositing the TDs late in the govt treasury.

So i wanna know that how to reply to the show cause and what matters to b included that  wud be teenable.

Can the prosecution be replaced by penalty only??

Please solve this as soon as possible.

[Amalraj Michael]

Dear Sir

You can go for  compounding of the offence and you can also request the department for the waiver of any penalty .However you should pay the interest for the delayed time . When you go for compounding , you need to pay the compounding fee which will be around 5% of the default amount per month and you should also agreed to pay the prosecution establishment expenses . So you just write a letter to the commissioner for the compounding of the offence and indicate your agreement to pay any compounding fee and prosecution establishment expenses . I think that the department will agree for this proposition and thus you can avoid any prosecution under 276B.   

The offence you have commited should have been the first offence .  

Thanks ,Amal Raj

[Guest]

Thanks a lot sir for your valuable suggestion as i was looking for the reply from very before.

Thanks !nce again sir.

AI Summary

Compounding of late TDS deposit offences can avert prosecution; requires payment of interest plus compounding fee and costs. A show cause for late deposit of TDS can be met by applying to the commissioner for compounding of the offence, agreeing to pay interest for the delayed period, a compounding fee calculated on the default amount, and prosecution establishment expenses; a request for waiver of any penalty may be made, with compounding generally available where the offence is a first offence and the department consents.