Tds on gst
This query is : Resolved
03 July 2019
Sir,
I want to know about tds liability on GST.
If a company issued a invoice on 31 may 2019 and service also taken same day but receipient of supplier who received this invoice on 20 Jun 2019, then in this case, when receipient will liable to deposit tds , according to invoice date or according to when he make entry of this bill in his books of accounts.
Also confirm in simple language the meaning of credited to supplier , as far as our knowledge it mean when we book invoice in books of account or enter the bill in software by debiting exp and crediting supplier accounts.
I want to know about tds liability on GST.
If a company issued a invoice on 31 may 2019 and service also taken same day but receipient of supplier who received this invoice on 20 Jun 2019, then in this case, when receipient will liable to deposit tds , according to invoice date or according to when he make entry of this bill in his books of accounts.
Also confirm in simple language the meaning of credited to supplier , as far as our knowledge it mean when we book invoice in books of account or enter the bill in software by debiting exp and crediting supplier accounts.
04 July 2019
The answer is in the 2nd part of the query.
04 July 2019
But there is one CA is saying that TDS will liable as per invoice date , if he received invoice of 31 may 2019 in 20 June then he is liable to deposit tds for may month,
How can we explain or satisfy him
How can we explain or satisfy him
27 July 2025
Great question! Let me break it down simply:
**TDS deduction and deposit liability depends on when the amount is "credited" to the supplier.**
### What does "credited" mean here?
It means **when the amount becomes payable to the supplier** — practically, when you record the invoice in your books (i.e., debit expense and credit supplier).
### So in your case:
* Invoice date: 31 May 2019
* Invoice received/entered: 20 June 2019
You **credit** your supplier (and thus become liable for TDS) only when you enter the invoice in your books (20 June), NOT on the invoice date.
### Hence, TDS liability arises in June, not May.
---
### How to explain to the CA saying TDS is on invoice date?
You can refer to the Income Tax Act and CBDT clarifications which clearly state:
* TDS is to be deducted **at the time of credit of income or payment, whichever is earlier.**
* If payment happens after invoice date but invoice is entered in books only later, the credit happens on the date of entry, not invoice date.
Therefore, TDS should be deposited based on when you enter (credit) the invoice, which in your case is June.
---
**Summary:**
* "Credited" = entered in books (debit expense and credit supplier).
* TDS deposit based on when invoice is entered, not invoice date.
Does that clear it up? Want me to share any official references or circulars on this?
**TDS deduction and deposit liability depends on when the amount is "credited" to the supplier.**
### What does "credited" mean here?
It means **when the amount becomes payable to the supplier** — practically, when you record the invoice in your books (i.e., debit expense and credit supplier).
### So in your case:
* Invoice date: 31 May 2019
* Invoice received/entered: 20 June 2019
You **credit** your supplier (and thus become liable for TDS) only when you enter the invoice in your books (20 June), NOT on the invoice date.
### Hence, TDS liability arises in June, not May.
---
### How to explain to the CA saying TDS is on invoice date?
You can refer to the Income Tax Act and CBDT clarifications which clearly state:
* TDS is to be deducted **at the time of credit of income or payment, whichever is earlier.**
* If payment happens after invoice date but invoice is entered in books only later, the credit happens on the date of entry, not invoice date.
Therefore, TDS should be deposited based on when you enter (credit) the invoice, which in your case is June.
---
**Summary:**
* "Credited" = entered in books (debit expense and credit supplier).
* TDS deposit based on when invoice is entered, not invoice date.
Does that clear it up? Want me to share any official references or circulars on this?
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