TDS either on crediting payee's a/c or at the time of payment whichever earlier

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Manoj Kumar (Querist)

16 November 2007 If we have debited expenses a/c crediting expenses payable account without deducting TDS on closing date , in april while making payment we deducted TDS and deposited same on same date , what will be consequence ,in which TDS reture it need to be submitted and for which FY

Late CA Sampat Jain

Late CA Sampat Jain (Expert)

16 November 2007 TDS is payable on credit or payment which ever is earlier.
It will not make any difference if the credit is made to some other account , in stead of the payeee. It will be treated as amount credited , and other consequences will follow.

Amarjeet Singh

Amarjeet Singh (Expert)

16 November 2007 You require to deduct TDS in the date on which credit is made or payament is made which ever is earlier.You have to show the same in the quaterly return in which u deduct the TDS.further as per section 201 if TDS is late deducted or deposited then u are assessee in default & have to pay intrest @ 1% per month u/s 220.

o.velavan

o.velavan (Expert)

18 November 2007 Sec194C and Other TDS sections have stated that,if at the year end i.e.on31.3.2007 expenses is debited and credited to payable a/c ,u have to deposit the tax within two months from the date of deduction viz within 31.5.

I assumed that on 31.3.u had debited the expenses a/c hence your due date for tds payment is 31.5.

suppose deduction is for 31.3.2007,u have to show in that financial year quarterly return viz for the quarter ending on 31.3.2007

Manoj Kumar

Manoj Kumar (Querist)

18 November 2007 Thanks, but i want to know if i have credited payeee on 31st march without deducting TDS then in April while making payment we deducted TDS and deposited the same, whether there any thing incorrect.Any interest u/s 201 attracts.....