Tds
This query is : Resolved
09 May 2013
Dear Sir
When to deduct TDS whether it is on accrual basis or payment basis.
IN one instance of our client they paid amount to the contractor but they dont deduct TDS on the payment because they did not received any bill from contractor.
As per explanation given by them they will deduct TDS when ever they receive bill from contractor.
They have paid in the year 2012-13 and not deducted tds and they received bill in 2013-14 so they deducted TDS
Finally my query is what is the impact of that payment in 2012-13 as well as 2013-14
When to deduct TDS whether it is on accrual basis or payment basis.
IN one instance of our client they paid amount to the contractor but they dont deduct TDS on the payment because they did not received any bill from contractor.
As per explanation given by them they will deduct TDS when ever they receive bill from contractor.
They have paid in the year 2012-13 and not deducted tds and they received bill in 2013-14 so they deducted TDS
Finally my query is what is the impact of that payment in 2012-13 as well as 2013-14
VIVEK BARANWAL
(Expert)
10 May 2013
TDS will be deducted on accrual(credited in his account or payment made whichever is earlier.
Your client explanation is incorrect.
Impact : Person failing to deduct or after deducting failing to deposit is liable to pay simple interest @ 1.5% for every month or part thereof from the date of failing to deduct till the date of deducting till date of depositing the same with the Government
Party has to pay interest on late payment
Your client explanation is incorrect.
Impact : Person failing to deduct or after deducting failing to deposit is liable to pay simple interest @ 1.5% for every month or part thereof from the date of failing to deduct till the date of deducting till date of depositing the same with the Government
Party has to pay interest on late payment
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