TDS

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Querist : Anonymous (Querist)
26 February 2011 Whether TDS is deductible on payment made in advance???

26 February 2011 If advance is paid against such expenditure
on which TDS is required to be deducted, then it is to be deducted "on paid or credited to the a/c" which ever is earlier.

Suppose, you have made advance payment to a contractor, who is supposed to carry out certain work, TDS is deductible at the time of advance payment made.

26 February 2011 yes tds is deductible at the time of advance payment.

27 February 2011 Hi,
You have to clear,What type of advance is this ?

27 February 2011 tds is deductable at the time of crediting the party account or making payment which ever is earlier.

Since you have made advance payment presuming to be crediting party then TDS should be made

28 February 2011 Yes. TDS is to be deducted on advance apyment.


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