TDS should be deducted on the bill amount or on the payment amount. i.e. 12.10.09 bill – 125000, payment made 60000 dt. 15.10.09 (balance due). Tds @ 10% (194J) amount 6000 or 12500. Please guide.
CA SUDHAKAR
(CHARTERED ACCOUNTANT)
(189 Points)
Replied 19 November 2009
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.
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 19 November 2009
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.
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