Tds

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

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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.

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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.
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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)
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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.
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If you have deducted more TDS on an earlier stage, you can adjust it at a later stage.
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So it will not create any problem.
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G.Ramesh

G.Ramesh (Expert)
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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 ?

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