TDS Interest Rate

[guna ch]

Dear Sir/s

Kindly advise me what is the present interest reate,  if tds deducted but not deposited, tds not deducted ?

currently i am charging interest @ 18% p.a.Is it currect or not

Advance Thanking you.

[CASeetharaman KC]

If TDS is not deducted then interest is payable @ 1% per month or part thereof from the date on which TDS is deductible uptill the date on which it is deducted and 1.5% per month or part thereof from the date on which TDS is deducted till the date of actual payment.

[guna ch]

Thanking You Sir.

[Guest]

 

Dear sir,

1) TDS Collected But not deposited - 1% per month or part of the month

2) TDS not deducted - 1.5% per month of part of the month

so, you are collecting wrong percentage and that 18% interest relating to Service tax.

 

Shankar

Accountant

[Shabbeer Pasha]

Dear Sir,

 

Have lost the data in TDSMAN software by formatting computer... any ways to file the TDS returns or recover the data?

Please suggest

Shabbeer

AI Summary

TDS interest: different rates apply for failure to deduct versus failure to deposit; service tax interest is distinct. Where tax deducted at source is not deposited, a monthly interest rate applies for the period between deduction and deposit; where tax is not deducted, a higher monthly interest rate applies from the date tax was deductible until deduction and then until payment. The forum clarifies that an 18% contractual interest rate cited by the user relates to service tax, not TDS, and stresses differing interest treatments for failure to deduct versus failure to deposit.