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Tax deducted at source

Neelakanta Neelu (29 Points)

12 October 2017

Why we deduct TDS for advance Payment?

Thanks And Regards

Neelakanta K

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8 Replies

Ashiwini Ballodia (Managing Partner at TAXounting) (8727 Points)
Replied 12 October 2017

TDS is deducted on Advance payment because if TDS is not deducted and full payment for the service has been made in advance than how can you deduct TDS after complection of service

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Neelakanta Neelu (29 Points)
Replied 12 October 2017

Thanks mam

RAJA P M ("Do the Right Thing...!!!") (127669 Points)
Replied 12 October 2017

@ Neelakanta Neelu.,
He (Mr Ashiwini Ballodia) is Very Young MAN...

Not a Girl...

Ashiwini Ballodia (Managing Partner at TAXounting) (8727 Points)
Replied 12 October 2017

Neelakanta Ji I am Sir & not Mam

Ashiwini Ballodia (Managing Partner at TAXounting) (8727 Points)
Replied 12 October 2017

Thanks Raja Ji

And Neelakanta Ji I am Sir & not Mam

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Neelakanta Neelu (29 Points)
Replied 12 October 2017

sorry sir I thought ur a girl because I got confused from ur name

Neelakanta Neelu (29 Points)
Replied 12 October 2017

if I make 20000 payment for suppliers on that time also we make TDS for advance payment why?

Ashiwini Ballodia (Managing Partner at TAXounting) (8727 Points)
Replied 12 October 2017

Its ok Neelakanta Ji. If you read the provision of TDS it is written that TDS to be deducted on Payment or Credit whichever is earlier. So TDS is to be deducted on Advance payment.