Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2016 Dear experts

A hospital receives one lakh from a patient on for eg. 15th Jan 2016, that amount should go to a outside doctor as a professional fees. On 1st Feb 2016 the hospital pays 90000 to that doctor after deducting TDS by way of a cheque. My question is on which month the TDS amount of Rs.10000 should be deposited. If the answer is before 7th Feb 2016, what date should I mention in TDS return statement when it asks DATE OF PAYMENT because actual date of payment was 1st Feb 2016.

CA Sumiit B Nagpal

CA Sumiit B Nagpal (Expert)
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25 September 2016 Section 194 J speaks
"..... shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to ten per cent of such sum as income-tax on income comprised therein :"
The payment was received by the hospital, Doctor gave it's services to Hospital. 15 Jan , accordingly to me can't be taken as credit date because it can't be said that the doctor had full right to receive the payment on 15th Jan only.
If the hospital has passed the credit entry in it's books in the month of Jan itself , then the TDS deduction would be on or before 7th of Feb. If no such entry has been passed/passed only after payment of the same on 1st Feb - the TDS payment date would be on or before 7th of March.
If the situation is like, the cheque was given in Jan but cleared in Feb , then the date would be on or before the 7th of Feb.

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2016 Thank you very much sir