31 October 2009
The Assessee has taken loan from relative on which he pays monthly interest which attracts TDS Provision. My Querry is the assessee is paying interest monthly but he pays it in the following month. E.g. April Month's interest is paid on 2nd May. So the liability to deposit tax deducted with the Govt arises on 7th May or 7th June
is the assessee is making provision on a monthly basis ,and subsequently the payment is made in the next month then the tax has to be paid by the 7th of end of mth in which provision is made ie in your eg: 7th may .where no provision is made the it is the date of payment that comes first ,in such cases the date of payment into govt a/c is 7 days from the end of the month in which the payment is made ie in your eg 7th june .
01 November 2009
Is he required to book expense at the end of every month or can he book it on the date on which he pays the interest and can make provision for the month of march?
01 November 2009
If you are passing provision in april, should pay by 7th may , Passing in may tds payment by 7th June ...In any month payment or provision which ever made first TDS must be deducted and must paid in next month
01 November 2009
thanx for the advice but I wanted to know that whether it is mandatory to make provisions monthly or can I book expense on payment date
02 November 2009
It depends on which type of accounting system, you are following. Incase, of mercantile system, you have to make manthly provisions and in case of cash system, you can book expense on payment date. It is better to follow mercantile system and make monthly provisions
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