TaxTMI 
TaxTMI 
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.
TDS Interest Rate
07 Dec 2012 
4 Replies 
3660 Views Asked by
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. (AI Summary)
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. (AI Summary)