tds

Kumar,

TDS should be deducted at the time of credit or at the time of payment, whichever is earlier. In your case you had received the bill and you might have debited to the concerned expenses  and credited to suppliers account. As the date of credit is earlier to date of payment, you should deduct TDS of Rs. 12500 and  it should be remitted on or before 7th Nov, 2009 to avoid interest for delayed payment.

In case you had made the payment as advance of Rs. 60000/-, without receipt or credit of any bill for the service, you have to deduct TDS of Rs. 6000/- on advance payment and balance should be deducted at the time of  crediting the bills.

TDS should be deducted on the bill amount.

Deduct 10% on Rs 1,25,000.Payment does not matter.The amount of credit given to party is correct amount on which TDS should be deducted.