Payment of tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2015 Dear Expert,

My company is private ltd, in which we are implementing SAP. As per SAP all expenses regarding particular month (for example Aug 2015) are to be booked in Aug 2015 even though invoices are revised later (example in Oct 15) and payment to vendor made there after (example in Nov 15). (I know the amount of Invoice and have vendor PAN No with me - through purchase order)

My query is i'm booking expense in the month of Aug 15 in Oct 15 and payment made in Nov 2015, do i need to pay TDS in Sep 15 itself?

Please clarify the same

Thanks in advance

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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20 December 2015 As per rules TDS to be deducted on the date of payment or Credit whichever is earlier. If you are booking expenses in Aug 2015 then you are liable to deduct TDS on the date of booking and deposit TDS within 7th September 2015.

Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2015 Dear Sanjay Sir,
Thanks for your reply,

Does "Credit" means crediting the account of vendor?

Thank you.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 December 2015 Credit means either credit to vendor or any suspense or provision account what ever name called. so as suggested by Mr. Sanjay. TDS will be applicable in Aug-15 and need to pay by 7th Sep 2015

Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2015 Dear Ramesh Sir,

Thanks for your reply,

If suppose i dont know to whom i going to pay in august 15 then against who's pan i will pay TDS.

Thanks in advance

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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20 December 2015 While depositing TDS you do not require PAN. You need PAN at the time of filing of return.

Further if you dont know then how will you pass the entry in the books?

Querist : Anonymous

Querist : Anonymous (Querist)

21 December 2015 Dear Sanjay Sir,

Thanks for your reply.