If an invoice of March is paid after 7 April, is the TDS due on 7 May?

If we pay an invoice dates 30th March 2021 on 20th April 2021, should we deposit and sho the TDS in April 2021? Would that affect the other person's income in their ITR as the income will be shown in the next financial year? In GST return, it would be shown in the previous year.

How should we pay the amount?

Replies (5)
Quick Summary
TDS is deducted at the earlier of credit or payment. If an invoice is of March, TDS liability arises in March even if payment is made in April. The TDS must be deposited by the due date (30th April for March deductions). The timing does not affect the income recognition for the recipient.

The TDS amount should be deposited in April 21
The trigger point for deduction of tax at source (in most cases) would be at the earlier of the following: 1) At the time of credit (book entry) or 2) At the time of payment. Since, the invoice will be accounted in March, tax to be deducted at source in March itself. Due date for payment of TDS (related to March) will be 30th April.
I agree with Poornima Madam's views

Your payment in April would not impact your party's income as the invoice is of March'21 so it will be considered as income of March'21. For both GST and TDS, it will be the income of March'21.

Also TDS is applicable in payment or booking of invoice, whichever is earlier. So TDS should've been booked along with the invoice in March'21 and should be deposited till 30th April (due date for payment of ar'21 TDS).

I have received the bill dated 05/04/2021 for freight charges which is pertaining to 2020-21.Now I want pass provision entry for the freight charges for 2020-21 with tds effect.
is the below entry is correct?

Dr.Freight charges -Rs.100/-
Cr.TDS- Rs.2/-
Cr.Expense Payable (not party)-Rs.98/-

or

Dr.Freight charges -Rs.100/-
Cr.TDS- Rs.2/-
Cr.ExpensePayable (not party)-Rs.100/-
Dr.Party A/c -Rs. 2/-

please clarify which is correct entry with reason for the correct entry.

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