query about tds on advance payment

TDS 2413 views 2 replies

sunny

ACCOUNTANT

25 Points Joined July 2007

hello

i hve g8 confusion in my mind relating to tds on advance payment.

i have made payment on 7th june 07 for advance rent for the month of july-07 and the entry will be in june month : RENT DR./ CASH CR. AFTER THAT

PREPAID RENT DR./ RENT CR. AND IN JULY MONTH IT WILL BE

RENT DR. / PREPAID RENT CR. SO, what is the time limit for depositing the tds on advance payment? is it on 7th july or 7th august? plz clarify me.

bcoz somebody says it will be 7th july and somebody says it will be 7th august.

plz read this carefully and than answered

thanks in advance

gaurav

Replies (2)

TDS deducted shall be paid by 7th july i.e. the the month following the month in which TDS is deducted. TDS shall be deducted when you make the payment or when you credit the amount in your books, whichever is earlier. In your case the payment is made in advance hence TDS shall be deducted on payment and hence it shall be deposited in the month following the month of deduction.

Amit Pareek

Corporate Executive

28 Points Joined July 2007

the due date shall be 7th july only becuase as soon as payment is made, liability for deduction arises and it has to be deposited by 7th of next month.