Tds on contractor and others

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This query is : Resolved

c.v.narasimhan

c.v.narasimhan (Querist)

27 February 2014 An organisation is following cash basis of accounting. TDS is deducted on the bills,when the payment is made to contractors and others. TDs is paid on same day. For eg, contractor payment is made on 10th Feb 14,simultaneously tds deposited on 10th feb 14 itself.Please let me know whether we can deposit the tds on 7th March 14, instead on 10th Feb 14.

VIVEK BARANWAL

VIVEK BARANWAL (Expert)

27 February 2014 Law of TDS does not ask for basis of accounting. You may deposit the same in next 7th day of month.

c.v.narasimhan

c.v.narasimhan (Querist)

27 February 2014 Thanks.The organisation is a charitable organnisation, but not a Govt organisation.
Though the organisation follows cash basis of accounting, I feel tds can be deposited on or before 7th of following month, though the payment is made to the contractor on 10th Feb 14.Please confirm

VIVEK BARANWAL

VIVEK BARANWAL (Expert)

27 February 2014 yes ,you can do it.

For comfort to TDS deductor Income Tax deptt made this provisons

c.v.narasimhan

c.v.narasimhan (Querist)

27 February 2014 Thanks for your replies

regards

c.v.narasimhan

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