Provisions regarding TDS

This query is : Resolved

CA Vijay V Kodmur (Querist)
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16 October 2008 Hi Friends
If propriety firm subject to Tax Audit U/s 44AB makes payment only on account through out the year to contractor & takes a single final bill for throughout the year on 31-3 of the respective year & Deducts tax (TDS 194C) for that single bill.
Whether it would be worthwhile of avoiding monthly payment of TDS.

Guest

Guest (Expert)

16 October 2008 my Opinion
TDS must always be deducted on payment or credit whichever earlier
in your case you made payment first and after you credit it so it will not be worhtwile to deducte tax on credit basis you have to deducte the tax on payment basis you can not avoid tds on monthly basis

CA Pawan Goswami

CA Pawan Goswami (Expert)
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16 October 2008 TDS u/s 194C is deducted at the time of booking of exp./payment to party whichever is earlier.
If neither you make payment to party before receing the bill (Pay the party in a single payment) nor you credit the party before receiving the bill (You are not booking exp. before it),then you can avoid monthly payment of TDS.
In your case, you made payment throughout the year.
So, you cannot avoid monthly payment of TDS.

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