TDS Related Confusion.

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This query is : Resolved

Quick Summary

This discussion clarifies confusion around Tax Deducted at Source (TDS) when there's a gap between an invoice date and when it's booked in accounts. The consensus is that TDS liability, and potential interest or penalties for late payment, are triggered by the earlier of when the expense is booked or when payment is made (including advances). The invoice date itself is generally not the determining factor for these charges.

Raju Vala

Raju Vala (Querist)

23 January 2021 Invoice received from Party Invoice Date 27/10/2020.
When I Booked in Account Date 23/01/2021.
So Interest/penalty applicable in this invoice.
Please guidance.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

23 January 2021 Invoice of what?????

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 January 2021 No interest and penalty applicable as you booked in accounts now only. Invoice date is irrelevant, only date of booking in accounts and date of payment is relevant for interst for late payment.

Message likes : 1 times

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

26 January 2021 Agree with CA R Seetharaman Ji, TDS Liability ariese either by Booking of Expenses or Making Payment (Advance) for Expenses whicever is earlier. If you are making any advance payment for goods or services make sure to deduct TDS accordingly.

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