Payment of Late Fee (TDS)

In the event of late filing of the TDS returns (26Q and/or 27Q) will attract a Late fee.

Let us consider an example, the due date for filing of TDS statement in Form 26Q for the III Quarter was January 15, 2014. ABC Company filed the returns on 17-01-2014. ABC Company has to pay a late fee of Rs. 200/- per day.

Let us see how this is handled in Tally.ERP 9

Step 1: Create Late Fee ledger

Go to Gateway of Tally > Accounts Info. > Ledgers > Create

• In the Name field enter the Ledger Name e.g. Late Fee

• In the Under field select Indirect Expenses group

• Set Inventory values are affected to No

• Set Is TDS Applicable to No

• Press Enter to save

Step 2: Record Payment Voucher

Go to Gateway of Tally > Accounting Vouchers > F5: Payment

1. Click S: Stat Payment to use the stat payment helper

2. In the Type of Duty/Tax field, select TDS and set Auto Fill Statutory Payments to No

3. In the Account field select Canara Bank

4. Under Particulars field select Late Fee from the List of Ledger Accounts and press enter to view Payment Type screen

5. In the Payment Type screen, select Late Fee for Non-Resident (Form 27Q), or Late Fee for Resident (Form 26Q) from the List of Payment Type

5. Enter the 400 in the Amount field

6. Set Provide Details to Yes.

   • The filing period is displayed in the fields From and To. This can be changed, if required

   • Press Enter. The cursor skips the fields Section No., Nature of Payment, and Deductee Status.

   • Enter other details as shown below:

8. Press Enter to go to the Payment transaction

9. Press Enter to accept the Amount

10. Fill in the required details in the Bank Allocations screen

11. Press Enter to go to the Payment transaction

12. Enter Narration as required

The completed Payment Voucher is as shown below:

9. Press Enter to accept

Note: Late fee for both Form 26Q and 27Q can't be accounted in the same payment voucher.

Step 3: Generating ITNS 281 Challan

The Late Fee details will be captured in the TDS Challan - Challan No./ITNS 281 under the Fee under sec. 243E field. The Late Fee details will also be captured in E-TDS returns for 26Q and 27Q.

Smilarly, Late Fee for Non-Resident can also be accounted for using Tally.ERP 9 and ITNS 281 Challan can be generated for the same.