Tds applicability on company

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TDS is applicable at the time of payment or credit, whichever is earlier. If an expense provision is made on 31 March for a known vendor, TDS must be deducted in that financial year even if the bill is received later.

jaya

jaya (Querist)
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07 May 2026 Hi,
if we put provision of an expense (from our regular vendor) on 31st march then the tds appllicability will come during that year or when we receive and consider the bill?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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07 May 2026 Section 194 requires TDS on payment or credit—whichever is earlier. A provision for a known vendor counts as a credit, triggering TDS in the same financial year.
TDS sections state tax is due upon "credit of such sum to the account of the payee" or by "whatever name called" (like a Provision account).

jaya

jaya (Querist)
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07 May 2026 Thanx a lot for this prompt reply

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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07 May 2026 You are welcome.

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