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Offences and Penalities

Penalty for non deduction of TCS

Some of my friend says that if any person fails to deduct TCS then no penalty will be raised because section 206(C)(6) says ” Any person responsible for collecting the tax who fails to collect the tax in accordance with the provisions of this section, shall, notwithstanding such failure, be liable to pay the tax to the credit of the Central Government in accordance with the provisions of sub-section (3).”but w.e.f.1-4-2007sec 206(c)(6a) inserted and it .....

Penalties for Failure to Deduct and Deposit TDS

Failure to Deduct TDSIf a person fails to deduct the whole or any part of TDS as required under any of the provisions of sections 192 to 196D then:(a) The person responsible for deduction is treated as ‘assessee in default’(b) He shall be liable to pay by way of penalty a sum equal to the amount which he failed to deduct.(c) He shall be liable to pay simple interest @12% p.a. on amount of tax .....