One my client had a TDS default for AY 2011-12 and we had opted for compounding of offence to avoid prosecution. Now we have received a letter from ITD asking to pay compounding fee.
Challan No 281 is (TAN based Challan) used for deposit of TDS. However one has to select NATURE OF PAYMENT being made and there is no option available to include Fees/Penalties. In case of making online payments, we cannot proceed further at TIN website, until we select nature of payment.
On the other hand, Challan No 280 (PAN based Challan) contains options for payment of Misc Fees.
My concern is which Challan form to be used for payment of compounding fee.
Can we use Challan No 280 for deposit of compounding fee?
Thanks in Advance
CA M. Rehman
9911400178