02 February 2015
Sir, Bill Issued on 5/4/2014 & Tds Deducted After A month i.e 05/05/2014, TDS has Deposited on 07/06/2014. Is There any TDS Penalty will be Levied on Assesse?? Is it Valid to Deduct TDS After A month From Recording of Entry??
03 February 2015
Tax is required to be deducted on date of booking or payment whichever is earlier. In the given case, it is mentioned that bill is issued on 05/04/2014. If bill is booked in april and tax is deducted in may then it will lead to delay in tax deduction and penal interest on delayed payment is attracted.
If bill is booked in the month of may 2014, then there is no delay because bill is booked in may and tax is deducted in may.
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