If X is a service vendor Invoice date is 1st January 2020 and due to some issue we have not paid them payment, and paid 5th May 2020 and deducted TDS Rs.5000/- shall we pay interest on TDS, because Invoice date is 1st January 2020.
09 May 2020
Tds compliances apply bill or payment whichever is early tds to be deducted above case tds to be done on January interest applicable for 5 months.
09 May 2020
Yes. TDS needs to be deducted either at the time of booking & credit any liability to the recipient or at the time of payment whichever is earlier.
CAclubindia
