banner_ad

Sec 194C - chargeability of TDS

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
08 September 2010 In our company in case of contractor payments , Service sheet is prepared by Engineers through SAP system. System genarates accounting entry debit to " expenditure" a/c and Credit to " GR/IR (clearing a/c)".

When Finance deptt. actually accept the liability System genrate another entry Debit to "GR/IR (clearing a/c)" and credit to Contractor a/c.

My query is whether TDS is to be deducted at the time of passing Ist entry or IInd entry.
Profile Image

CA Shailesh Kumar Bhagat

Profile Image

CA Shailesh Kumar Bhagat (Expert)
08 September 2010 As per sec 194 C tax is to be deducted either at the time of xredit of such sum to the account of the payee or at the time of payment, which ever is earlier.

I understand , in the second entry amount is credited to payee( contractor's) account, so TDS is arises at the time of passing subsequent entry.
Profile Image

CMA Ramesh Krishnan

Profile Image

CMA Ramesh Krishnan (Expert)
08 September 2010 yes. Act is telling the Credit or Payment which ever is earlier, so TDS liability will arise on 2nd entry
Profile Image

Bhaskaran Chackrapani Warrier

Profile Image

Bhaskaran Chackrapani Warrier (Expert)
08 September 2010 By virtue of the provisions in section 194C(2), tax is to be deducted at the time of 1st entry and not at the time of 2nd entry.
Profile Image

mohinder kansal

Profile Image

mohinder kansal (Expert)
08 September 2010 agree with B Ckackrapni ji
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
08 May 2026
CHARTERED ACCOUNTANT

SHAH LADHA AND ASSOCIATE

Ahmedabad

CA

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
14 May 2026
Financial Analyst - Remote Finance Expert

HiringBridge

Ahmedabad

CA

View Details