<\/span><\/h2>\n\n\n\nIf TDS is not deducted or not deposited, the deductor will be liable\nto pay interest at the rate of 18% per annum from the date on which TDS was\ndeductible till the date on which it was actually paid. In addition, the\ndeductor may also be liable to pay a penalty.<\/p>\n\n\n\n
Let us understand in details regarding the consequences of TDS:<\/em><\/strong><\/p>\n\n\n\nTDS (Tax Deducted at Source) is the amount of tax that is deducted\nfrom a payment made to a person, as per the Income Tax Act. The consequences of\nnon-deduction or non-payment of TDS can be severe, and they may include the\nfollowing:<\/p>\n\n\n\n
\n- Interest<\/strong>: If TDS is not deducted or is\ndeducted but not paid, interest at the rate of 1.5% per month or part of the\nmonth will be charged until the tax is paid.<\/li>\n\n\n\n
- Penalty<\/strong>: If TDS is not deducted or is\ndeducted but not paid, a penalty of up to the amount of tax that should have\nbeen deducted can be imposed.<\/li>\n\n\n\n
- Prosecution<\/strong>: If TDS is not deducted or\nis deducted but not paid, the person responsible for deducting and paying TDS\ncan be prosecuted under the Income Tax Act.<\/li>\n\n\n\n
- Disallowance of Expenses:<\/strong> If TDS is not\ndeducted or is deducted but not paid, expenses related to the payment may be\ndisallowed while computing the taxable income of the person who made the\npayment.<\/li>\n\n\n\n
- Loss of Reputation<\/strong>: Non-deduction or\nnon-payment of TDS can lead to a loss of reputation in the business community\nand can affect the ability to get future business opportunities.<\/li>\n<\/ol>\n\n\n\n
Therefore, it is important to ensure that TDS is deducted and paid\non time to avoid any penalties, interest, or prosecution under the Income Tax\nAct.<\/p>\n\n\n\n
<\/span>Conclusion<\/span><\/h2>\n\n\n\nIn conclusion, the guidelines for the deduction and deposit of TDS under GST are clear and specific. It is important for deductors to comply with these guidelines to avoid penalties and interest charges. It is always advisable to consult a tax expert or refer to the relevant provisions of the Income Tax Act or Goods and Service Tax Act for specific details on the rate of TDS to be deducted for different payments.<\/p>\n","protected":false},"excerpt":{"rendered":"
Tax Deducted at Source (TDS) is a system under which the person making payment (known as the deductor) deducts a certain percentage of tax at the time of making payment to the supplier (known as the deductee). In the case of GST, TDS is deducted by the deductor at the rate of 2% (1% for […]<\/p>\n","protected":false},"author":55,"featured_media":54191,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[783],"acf":{"service_id":"132"},"authorName":"Soumyadipa Banik","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2023\/02\/MicrosoftTeams-image-66.jpg","authorDescription":"Soumyadipa is a legal professional and has completed her Masters (L.L.M.) in Business Law from Amity University. She is an aspiring content writer and legal researcher with more than a year experience. She have earlier worked for Startup companies and written business and legal articles, blogs and website content. She is good at presenting complex issues in organized, easy-to-understand terms and committed to provide highly persuasive content.","postViews":3249,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/54190"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=54190"}],"version-history":[{"count":5,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/54190\/revisions"}],"predecessor-version":[{"id":68813,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/54190\/revisions\/68813"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/54191"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=54190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=54190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=54190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}