Tds payment provision and understanding

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Mohith Guptha (Querist)
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27 May 2019 Dear Sir/Madam,

Our's is a private limited company, every month we pay directors salary for the previous either on 1st or 2nd of the next month and the employee's salaries for the previous month are paid between 5th to 7th of next month. The TDS which is deducted is normally paid on 7th of the month online. Here i wanted to know when do i need to pay the TDS deducted, is it the 7th of that month or before 7th of next month, For example April 2019 salary is paid on 2nd may for directors and 7th may 2019 for employees then when do i make the payment of TDS online, is it 7th of may 2019 or before 7th june 2019, also if it is 7th may 2019 and if i do not remit the payment online then what shall be the penalty or late payment fees and interest that has to be paid and its calculation. Please let me know the different clauses and provisions stated in the books of law for the payment of TDS. Thanks in advance.

Regards
Mohith Kumar Guptha

H B BHASKAR SHENOY

H B BHASKAR SHENOY (Expert)
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28 May 2019 TDS is to be deducted when you credit the party account or make payment whichever is earlier.
In your case do you make the provision for salary payable at the end of each month as required by the mercantile system? If so, then April salary payable would have been entered in the books on 30th or so of April. You need to deduct tax when making that entry and TDS to be remitted on 7th May or earlier. If that entry for salary payable is not made, then deduction itself happens on payment in the first week of May, so TDS needs to be remitted on 7th June.

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