Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2012 I Have a bill dated 01.03.2012 on which TDS has to be deducted on 01.03.2012. But i Have paid TDS on 18.02.2012. Is there any problem in paying TDS in advance? Please answer.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

20 February 2012
Is there any difficulty if you credit this bill as on the date of deduction?

.
You may enter the bill on 18.02.2012 itself as you have got the bill. Or either pass a journal entry towards advance payment to the payee.

.
In my view, there will be no problem, if you deduct in advance however, the law requires, TDS to be deducted at an earlier stage of payment or credit.
.

Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2012 As the bill is for March i can't credit it in Feb 2012. Ihave to credit it on 01.03.2012. Can I set off the advance TDS payment to it on 01.03.2012

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

20 February 2012 Once you have paid TDS of the party, logically you have made a payment to the party. This is such payment on which 100% TDS has been deducted by you.
.
If you have deducted more TDS on an earlier stage, you can adjust it at a later stage.
.
So it will not create any problem.
.

G.Ramesh

G.Ramesh (Expert)
Follow

20 February 2012 It will be treated as deduction of TDS from the advance payment ...here clarity required have you paid any advance to the party on 18th or before that ?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now