(1) If Tax invoice is raised/generated on 01-05-2020 but payment will be done after 14-05-2020, then OLD TDS rate(without reducing by 25%) is applicable. Right ?
(2) the provision is not applicable on tds ON GST. Right?
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Revised TDS rate by 25%
Replies (3)
Quick Summary
1) Under which section your TDS is getting deducted?
Because in some sections TDS is deducted at time of making payment or at the time crediting the account of payee whichever is earlier. So please mention under which section your TDS is getting deducted and also mention whether the management (i.e. payer) has made entry in their books of account to your account(i.e. payee) before 14-05-2020.
2) Reply to 2nd question: yes, the provision is not applicable on TDS on GST.
Because in some sections TDS is deducted at time of making payment or at the time crediting the account of payee whichever is earlier. So please mention under which section your TDS is getting deducted and also mention whether the management (i.e. payer) has made entry in their books of account to your account(i.e. payee) before 14-05-2020.
2) Reply to 2nd question: yes, the provision is not applicable on TDS on GST.
Under section 194C & MANAGEMENT (i.e. payer) has made entry in book of account on accrue basis
As per section 194C, the Deductor is required to deduct TDS within earlier of the following dates –
At the time of credit of sum to the account of the Contractor; or
At the time of payment in cash or cheque or draft or any other mode.
Further, as per the press release of Income Tax department - TDS on the amount paid or credited during the period for 14th May,2020 to 31st March, 2020 shall be deducted at the reduced rates.
As given in press release the word 'paid or credited during the period...' on plain reading of it, we can interpret that even if it was credited before 14-5-2020 but paid after 14-5-2020, TDS should be deducted at lower rates.
Keyur Sukhwani
9601006671
At the time of credit of sum to the account of the Contractor; or
At the time of payment in cash or cheque or draft or any other mode.
Further, as per the press release of Income Tax department - TDS on the amount paid or credited during the period for 14th May,2020 to 31st March, 2020 shall be deducted at the reduced rates.
As given in press release the word 'paid or credited during the period...' on plain reading of it, we can interpret that even if it was credited before 14-5-2020 but paid after 14-5-2020, TDS should be deducted at lower rates.
Keyur Sukhwani
9601006671
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