booking of bill for tds

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Querist : Anonymous

Querist : Anonymous (Querist)

30 March 2016 Dear Experts,
Plz clarify i have receipt the labour contract bill on 11/3/2016 however the bill date is 27/2/2016, plz tell me when should i book this bill for TDS deduction weather on 27/2/2016 or on 11/3/2016,

Regard
Raj kumar

PRADEEP KUMAR VATS

PRADEEP KUMAR VATS (Expert)

30 March 2016 Dear Raj

In my opinion, TDS should be deducted at the time of payment or credit the account of the vendor i.e in your case contractor.

So you can book the bill only after the bill is received. You should book the entry as on 11.03.2016 and deduct TDS at that time.

Regards
Pradeep

Querist : Anonymous

Querist : Anonymous (Querist)

30 March 2016 Sir some tax experts has advised that you should book the bill on 27/2/2016 as the date of bill because this is the documentory evidence....

PRADEEP KUMAR VATS

PRADEEP KUMAR VATS (Expert)

30 March 2016 Dear

It's their personal opinion. So read the law pertaining to TDS and how can you book the invoice on the same date which practically not possible in most of the cases.

If you are doing audit , we always have to book all the provision(expenses) pertaining to March month in march itself otherwise the same will be treated as prior period in the next financial year. But the same is not required if the bill date of any month booked in the month in which it is received provided both the month must cover within the same financial year.

Regards
Pradeep

Querist : Anonymous

Querist : Anonymous (Querist)

31 March 2016 Sir... assume in respect of your guidance if i have booked the any bill on 28/2/2016 however due to any reason if i could't made the TDS payment by 7 march, then we can booked this bill after 7 march claiming that we had received this billl after 7 march, in that case we can avoid the interest also...

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