As per Section 234E where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues.
Currently when the TDS/TCS return gets delayed it is a usual practice that the return is filed after the due date with tin facilitation centre without depositing the fees u/s. 234E. The same is being accepted by TIN centre as the utility has not been upgraded for collection of fees prior to acceptance of delayed TDS/TCS Return. However certain important observation in regard to same is brought to notice of members: -
1). "ITNS-281 has been amended for collection of fees U/s.234E & is attached herewith."
2). Without prejudice to the provisions of the Act, a person shall be liable to pay penalty u/s.271H, if, he fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C; Penalty prescribed U/s.271H(2) shall not be less than ten thousand rupees but which may extend to one lakh rupees. However as per section 271H(3) no penalty shall be levied for failure to deliver TDS/TCS Statement if the person proves that after paying tax deducted or collected along with the fee and interest, if any, to the credit of the Central Government, he had delivered or cause to be delivered the statement referred to in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C before the expiry of a period of one year from the time prescribed for delivering or causing to be delivered such statement.
3). What we can make out after discussion with TIN-Facilitation Centre & going through the text of above sections is that though TDS utility has not been upgraded but still we should file the delayed TDS/TCS returns after depositing fees u/s.234E & interest so that the penalty provisions of section 271H could be avoided in future. The challan deposited for fees U/s.234E can also be included in the TDS return by way of payment others till the time utility is not upgraded.
tax 'N' accounts people
Tarun Kumar Gupta
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