TDS on prepaid expenses, CAN BE DEDUCTED

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Yes, Tax Deducted at Source (TDS) can be deducted on prepaid expenses. The key is that TDS is typically deducted on a payment basis. Therefore, you should deduct TDS on the earlier of the date the expense is credited to your books of accounts or the date of actual payment.

Daya

Daya (Querist)
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17 June 2022 whether TDS can be deducted on prepaid expenses.

CA Puja Sharma

CA Puja Sharma (Expert)
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17 June 2022 Yes, TDS should be deducted from prepaid expenses.
The due date for deduction of TDS is the date of credit in the books of accounts or the date of payment whichever is earlier.

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