Nirmit Choraria (CA Final) (1333 Points)
24 March 2012Supose ABC an Prop business deducts TDS of Mr P Rs 10000/- on commission and brokerage on the last date of the year i.e 31/3/2011 then timely deposite the tax. then the payemnt to Mr P of Rs 90000/- can be done any time in the comming years or there is a specific date before which the payemnt is to be made to the person. And if ABC dosen't pays that sum for 1-2years is the any consiquences to be faced by ABC.
mukesh
(ACCOUNTS MANAGER)
(29 Points)
Replied 24 March 2012
As per section 194H
TDS should be deducted on credit/or payment of the commission which ever is first and deposit to the government account on the due date.
Balance amount of the party after deduction of the tds amount can be paid as per your contract with party there is no consiquences on the balance payment to the party .
Only tds amount should be deposited on the time as per section 1964H.
Payment to party after deducation of amount can be depend upon the your credit policy .
If I am wrong , please retify me.
Mukesh
CS,MBA,M.Com
Harshal Fifadra
(Chartered Accountant)
(1489 Points)
Replied 24 March 2012
Agree with Mr . Mukesh ....
CAclubindia
