Tax deductible from the advance payment made to supplier ?

TDS 1232 views 4 replies

Dear all,

Does Tax deductible from the advance payment made to supplier?

Replies (4)

 

YES TDS have to  be deducted on advance payment.

Pls consider the "Date of Payment" or "Date of Invoice/Credit/Accounting" whichever is earlier.

Originally posted by : Darshak

Dear all,

Does Tax deductible from the advance payment made to supplier?

supplier means advance payment against goods .............or purchase, 

NO TDS APPLICABLE for purchase of goods 

Friend, you have not mentioned clearly whether that advance payment relates towards purchase of goods or for the transactions which comes under Sections;194c,194j, 194i etc. If the payments relate to those sections then the TDS will be attracted and in the majority of the sections it's say that the dection shall be made either at the time payment or credit to the payee whichever earlier.


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