Tds
This query is : Resolved
13 August 2010
Dear Sir out of Royality payble of Rs:1000000/- per month we have paid Rs:5,00,000/- as on advance is it necessary to deduct TDS for The advance payment please Advise...
13 August 2010
TDS to be deducted on date of payment or credit whichever is earlier.
If bill not booked deduct only on advance.
If bill not booked deduct only on advance.
CA Sanat Pyne
(Expert)
13 August 2010
YES TDS WILL BE DEDUCTED ON AMOUNT PAID OR CREDITED WHICHEVER IS EARLIER.
CA.ViVeK M ACA
(Expert)
13 August 2010
Fact of the cases
Royalty amount paid as an advance
provisio
TDS is required to be deducted at the time of payment or credit which ever is earlier.
Conclusion
Deduction here depends upon the accounting system. if you shown the above transaction just as an advance ( receivables) then not required to be deduct any TDS at that point of time. Deduct at the time of settlement of the same in to expense
But if you had shown it as an expense then must deduct the TDS and pay the amount.
Royalty amount paid as an advance
provisio
TDS is required to be deducted at the time of payment or credit which ever is earlier.
Conclusion
Deduction here depends upon the accounting system. if you shown the above transaction just as an advance ( receivables) then not required to be deduct any TDS at that point of time. Deduct at the time of settlement of the same in to expense
But if you had shown it as an expense then must deduct the TDS and pay the amount.
CA Suresh Choudhary
(Expert)
13 August 2010
Agree with experts
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