31st March TDS booking and due date

TDS / TCS 4748 views 4 replies

Sujit Talukder

service

719 Points Posted on 22 April 2009

If TDS is booked on credit entry on 31st March of previous year, then the due date of payment of TDS is 31st May. Now my query is:

If TDS is booked on 31st March 2009 and the amount (Net of TDS) is paid to party in the month of April 2009, then whether the due date for TDS is 31st May 2009 or 7th May 2009?

Is the 31st May 2009 due date for the said transaction is valid, since the amount is paid to the party?

for eg.; ABC Ltd. received a bill for Professional fees raised om 31st March 2009 by M/s XYZ Consulting for Rs 1,00,000. The bill is booked on 31st March 2009 and TDS is deducted for Rs 11,330/- and booked accordingly. As per rule, the due date to pay the Rs 11,330/- is 31st May 2009. Now the company, ABC Ltd., paid the net sum Rs 88,670/- to M/s XYZ consultant on 20th April 2009. When the Tds for Rs 11,330/- is required to be paid to the govt.? On or before 31st May 2009 or the due date will be revised to 7th May 2009, since the amount is paid to party in April 2009?

Please clarify?

Replies (4)

K R Ramesh

Service

201 Points Posted on 22 April 2009

When amount is credited to the payee account on the last day of the accounting year i.e. 31st Mar 09 then tax to be deposited within 2 months from the end of the month in which credit is made. Thus by 31st of May 2009

VIPUL BUBNA

MANAGER TAXATION

119 Points Posted on 27 April 2009

Yes, due date for payment of TDS for the entries credited on 31st March is 31st May, irrespective when it is paid in the next finanacial year.

the due date for payment of TDS is determined on payment or credit whichever is earlier and once the due date is determined on credit basis it cannot be again determined on payment basis.

And 7th May is the due date for payment of TDS deucted/credited whichever is earlier for the month of April which is next financial year.