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Is TDS Deducted on accruals or actuals

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This query is : Resolved

Pushparaj. A (Querist)

14 May 2009 Hi,

We do deduct tds on our payees. But we don't deduct for any payables right now. Is this ok or else whether the tds to be remitted for payable amounts also. Kindly reply.

Payment Type: Rent.

Regards
Samrat

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

14 May 2009 Tax is to be deducted at the time of credit or payment whichever is earlier. So on payables u have to deduct tax.

Time for depost of TDS.
1)In case of deduction by or on behalf of Govt on the same day.
2)In all other cases:-
a)amount credited to the payee's a/c on the last day of the accounting year-with in 2 months from the end of the month in which credited.
b)other cases-with in 1 week from the last day of the month of tax deduction.

CA PARVEEN GAMBHIR

CA PARVEEN GAMBHIR (Expert)

15 May 2009 it is to be deducted at the applicale rates either on payment or when amount is credited to the account of payee, which ever is earlier.

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