TDS PAYMENT U/S 194C

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This discussion clarifies when TDS under Section 194C is due. The payment date for TDS is determined by the earlier of when the amount is credited to the party's account in your books or when the actual payment is made. If you record the transaction based on the invoice date, TDS is deducted then. The general due date for TDS payment is the 7th of the following month, with an exception for March, where the due date is the 30th of April.

PARVATHY R

PARVATHY R (Querist)

13 June 2022 Sir, please explain the due date for TDS payment u/s 194c will be calculated from the
1. Invoice date (the date which is printed on invoice) (OR)
2. the date on which the payment was made to the concern party after deducting TDS

Sonnal Khandaray

Sonnal Khandaray (Expert)

13 June 2022 Credit to the party in the books of accounts or payment whichever is earlier.

CA Puja Sharma

CA Puja Sharma (Expert)

13 June 2022 The TDS should be deducted from the earliest of the two:
1. Credit in the books of accounts
2. Date of payment

Suppose you record the entry based on the invoice date, then TDS to be deducted on the invoice date.

The due date for payment is the 7th of the following month, in which TDS is deducted except for March, which is the 30th of April.

Sonnal Khandaray

Sonnal Khandaray (Expert)

13 June 2022 Date of receipt of invoice should be entry date in the books and not the invoice date printed on the invoice.

PARVATHY R

PARVATHY R (Querist)

28 June 2022 Thank you for your kind reply

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