Deduction of TDs
This query is : Resolved
11 January 2010
Dear frinds
Ours is MNC engaged in a construction business. Our sub contractors raise bils @ end of the month which we will forward to our head quarters approval. To comply the Tds obligations we have to remit TDs on or before 7th of the following month now, but we are receiving back subcontractos cheques and approval for payment of TDS after the due date of every month. In this context can I book the libality on payment basis instead of conventioal system creating tds libality while raising the bill itself ? til date we are paying interest every month on late of remittance of tds. is there any alternative to avoid interest ?
Ours is MNC engaged in a construction business. Our sub contractors raise bils @ end of the month which we will forward to our head quarters approval. To comply the Tds obligations we have to remit TDs on or before 7th of the following month now, but we are receiving back subcontractos cheques and approval for payment of TDS after the due date of every month. In this context can I book the libality on payment basis instead of conventioal system creating tds libality while raising the bill itself ? til date we are paying interest every month on late of remittance of tds. is there any alternative to avoid interest ?
11 January 2010
Yes, you should account the bill when you received back after approval and deduct TDS on such date of accounting. The TDS require to deduct on credit of account or payment whichever is earlier. Hence accounting at the time of payment will solve your problem. Only at year end you should take care of accounting on 31st March
11 January 2010
Actually tds has to book the payment or credit which ever is earlier
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Scrutiny and reopening of past returns
- Pass word to open justification report for Q1 for FY 2026-27
- Under construction property in ITR
- PPF interest-As Exempt Income disclosure
- Section 194JA & JB Income which ITR Form to use
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- New Garden in Place of Old Garden
- Indian IT Portal issue in computing tax as per UK-India DTAA
- F & O PROFIT REPORTING FOR AY 2026-27
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
