Tds credit or paid wihich ever is earlier
Querist : Anonymous
one pvt company is deducting tds as follwos u/s194c
bill date-26/11/12
payment date-8-12-12
entry in tally date-27-11-12
on which date TDS to be deducted & deposited
date of deposit 07.12.2012
Querist : Anonymous
one more clarification i need
if the entry date in tally is 2/12/12
than
Querist : Anonymous
BILL DATE 26/11/12
GRN DATE 27/11/12
Tally ENTRY DATE 2/12/12
PAYMENT DATE 8/12/12
**When to deduct TDS under section 194C (contract payment):**
TDS should be deducted **at the time of credit of payment to the contractor's account OR at the time of payment, whichever is earlier**.
In your case:
* Bill Date: 26/11/12
* GRN Date (Goods Receipt Note): 27/11/12
* Tally Entry Date: 02/12/12
* Payment Date: 08/12/12
The earliest credit/payment date is the **GRN Date 27/11/12** (usually the date when liability arises and is recorded in accounts), so TDS should be deducted on or before this date.
---
**When to deposit TDS:**
TDS deducted in a particular month should be deposited by the **7th of the next month**. So if TDS was deducted on 27/11/12, the deposit should be made by **7th December 2012**.
---
**In your scenario:**
* TDS deducted on 27/11/12 (when liability/entry arose).
* Payment made on 08/12/12.
* TDS should be deposited latest by 07/12/12.
---
**If deposit date is after 7th December (e.g., 07/01/13), it will be late and attract interest and penalties.**
---
**Summary:**
* Deduct TDS at earliest date of credit or payment (here, 27/11/12)
* Deposit TDS by 7th of next month (07/12/12)
---
If your payment date or entry date is after the bill date, it does not matter for TDS deduction — the earlier of credit or payment governs.
---
If you want, I can help draft a stepwise guideline or even prepare a note for your accounts team to avoid confusion. Would you like that?
Click here to login now
Similar Resolved Queries
- Where to Find Inspiration for Business Management Dissertation Topics?
- ALIMONY AND MAINTENANCE CHARGES
- Document to add trade name
- GST Partners addition
- Non-disclosure of Foreign Shares & Dividend in Past ITRs – How to Rectify & Report Now?
- ICWAI-Final best coaching center for online by English
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Refund_ Insufficient in credit ledger
- EPF Withdrawal Where to show in ITR2
- 54 F disallowance presentation in ITR 2
Trending Online Classes
-
Input Tax Credit, GST refunds and Recovery of refunds- Roadblocks and way outs
CA Nipun Arora03 September 2025 -
GST LIVE Certification Course - 43rd Weekdays Batch(With Govt Certificate)
Industry Expert15 September 2025
CAclubindia
