Late Filing of TDS return Levy

[amitabha debroy]

Dear Friends,

We are experiencing that many of our clients are getting intimations from TRACES that "Late Filing Levy" under 5(a) and 5(b)with full amount as 234E.

Can anybody suggest whether these are really practicable or not. Somebody had deposited 234E and revised their return still they are demanding.

Can IT dept asks for late filing fees(234E) for correction return? What is the fate of Kerala writ petition case against 234E? Any update?

Thanks in advance.

A Debroy

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[CA Pawan Kumar Agarwal]

Mr Debroy,

The concern raised by you and other members in the matter of levy of fee u/s 234E is genuine. 

The Kerala High Court writ stay matter status is still showing as pending.

 

However, without going into the reasonableness or otherwise of Levy of Late fee u/s 234E I would like to share with the members that filing of correction statement,by default, do not attract additional late fee u/s 234E. Members may note that:

(1) Late fee cant be levied for TDS deducted or TCS collected, as the case may be,prior to 1st July 2012 either for the Original TDS/TCS Return or for any correction return filed for such period.

(2) Late filing fee is calculated @Rs 200/- per day from the due date of filing the TDS/TCS Return to the date of filing such Return. However, such late fee will be restricted to the TDS/TCS amount.

Suppose, a delay of 20 days is made in depositing the TDS/TCS return for the QE Sept 2012, the late fee u/s 234E work out to Rs 4000/- Now, if the original return for the said quarter filed contains TDS/TCS amount of Rs 3000/- the late fee will be restricted to Rs 3000/-.

Now suppose, a correction return(s) for the said period is subsequently filed and the aggregate TDS/TCS amount work out to 5500/-, a further additional late fee of Rs 1000/- will be charged. (Total late fee chargeable Rs 4000/- minus late fee already charged Rs 3000/-). In no case, the aggregate late fee for this case, for original and correction return can exceed Rs 4000/-.

Thanks & Regard

Pawan

madanlala...@vsnl.net

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