TDS amounted to Rs.10000.00 payable for the month of Jan'2010 due for payment to Central Government Account on 07/02/2010.  Cheque prepared on 07/01/2010 but presented for payment on 10/01/2010, what will be the date of accounting payment of TDS is it 07/01/2010 or 10/01/2010(When Bank Stamped the Challan).

Mohan Saxena

Bank will stamp the challan on the date, on which you are going to submit in the bank

Its my personal Opinion, suggestion from other experts are also welcome

Dear Friends

I also want to know about this, bank stamp on challan carries the date of realization of the cheque.

Because our company generally deposit the challan along with cheque on 7th of the month but the challan that we receive after few days carries the stamp of 9th of the month.

Kindly tell me whether it would amount to a default.

Thanks in advance.

Dear Mohan,

For accounting purposes the relevant date is  10.01.2010 i:e on which cheque is deposited in Bank..

You can put any date on cheque but unless it is presented/issued it cannot be recorded in Books.

By the way if i m not wrong now TDS payments are made online mandatorarily...........

The date for accounting purpose ,  its 10.01.10, but  it will be recorded in the books of accounts by date 07.01.10

we are talking about date of accounting in our books. Date of entry in this case shall be 07.1.2010. 10.1.2010 is d date of realisation of cheque in respect of TDS.

regards,

ratan

As far as i know its mandatory to submit TDS online only for the corporates , and if cheque has deposited on 10.01.10 then the date of TDS payment would be taken as 10.01.10 only.  it doesn't matter when u have prepared cheque.

Mandatory electronic payment of tax by certain Categories of taxpayers w.e.f. 1-4-2008

CIRCULAR NO. DGBA.GAD. NO. H. 10875 / 42.01.038 /2007-08, DATED 10-4-2008

As you are aware, the Central Board of Direct Taxes vide their Notification No. 34/2008 dated 13-3-2008 (copy enclosed) have made electronic payment of taxes mandatory for the following categories of tax payers w.e.f. 1-4-2008 :

a. A company

b. A person (other than a company), to whom provisions of section 44AB are applicable.

2. In this regard the following instructions may be kept in mind while implementing the Government Notification:

(i) the status of all corporate taxpayers can be identified from the name itself. Further, the 4th digit of the PAN of all corporate assessee would necessary be “C”. Physical challans from such assessees shall not be accepted across the counter.

(ii) In case of tax payers covered under section 44AB, there should be no insistence of any proof of eligibility to pay tax through physical challans at the bank counters. The responsibility of making e- payment rests primarily with the taxpayer. Hence, the word of taxpayers should be taken as final.

(iii) the acknowledgement for e-payment should be made available immediately on screen by the bank concerned.

(iv) the transaction id of e-payment should be reflected in the bank’s statement.

(v) each bank should prominently display on its e-payment gateway page, the official /s to be contacted in case the taxpayer faces any difficulty in making the payment, completing the e-transaction, generating the counterfoil etc.

(vi) each bank should give the ITD and NSDL a list of officials with contact particulars, to be contacted if required for any problems faced by ITD or taxpayers.

Cheque is submitted to the Bank alongwith appropriate challan form duly filled in. According to CBDT guideline the Bank will affix the rubber stamp  on the challan showing the date of receipt of the challan. If the cheque issued by the payee is not required to be sent to the clearing house the dated stamp affixed by the Bank on the date of receipt of the cheque is the payment date of tax and if the cheque is sent for clearing the date of clearing by the other Bank i.e. Payee's Bank will be the date of payment of the tax. In such case the former Bank will affix another rubber stamp on the challan showing the date of realisation of tha cheque.The system is called double stamping.In this regard I agree with the remarks of Mr Amir that You can put any date on cheque but unless it is presented/issued (with in the validity period of the cheque) it cannot be recorded in Books.