TDS Calculation on Accrual / Booking Basis??

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 May 2010 Dear Sir/ Madam,

Kindly clarify me which one is the correct method for TDS calculation & Payment..

I will book the expenses through accrual basis before month closing, Bills will receive next month only..

1. TDS Calculate & Payment - Booking basis, even the bills not posted more than 3/ 4 months but service/work completed (payment also pending).

2. TDS Calculate & Payment - On Accrual Basis at the time of accrual hit(Payment will release only after receiving bill from vendor).

Which method is correct??

Thanks
Kesavan

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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27 May 2010 TDS need to be deducted on payment or crediting the bill to ledger which ever is earlier

While enterig the provision you enter the Provision value and tds different entries in the party ledger and after receving the bill you reverse the expenses provision entry only and book the actual bill with out considering the tds (which is been considered already)

O.D.SHARMA

O.D.SHARMA (Expert)
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28 May 2010 Kesavan.you are not clear about the question.How & on what basis you want to book.is there a contract /advance payment for TDS purpose.Without bill/payment you cannot go for TDS.it may be advance payment for TDS purpose or bill or payment.

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