Tds deduct on bill received date?

TDS 3617 views 2 replies

Hojefa

Ca final

178 Points Joined July 2013

Dear Friends,

One of My Client having Practice to deduct TDS on Bill received date (i.e Credit Client's A/c) instead of date mentioned in bill.

For Eg:- Expense Bill of Custom House Agent dated 25.09.2015 but actually bill received on 10.10.2015 it means after due date of TDS Payment of September (i.e 07.10.15) So due to this TDS not dedcuted on september month & no deposit of tds upto 07.10.15.Hence ,TDS Interest will be levied as per prescribed section.

So for escaping Interest on tds they are used to deduct tds on bill received date (i.e 10.10.15) & affixed received date stamp & deposit tds on next month (i.e upto 07.11.15) .

My Query :- Is this Practice to deduct tds on bill received date correct as per tds provisions ?

Kindly Reply

Thanks in Advance

Replies (2)

CA AnKiT BoHrA (AB)

Manager

25955 Points Joined November 2014

yes it is correct.. TDS needs to be deducted on credit or payment whichever is earlier in account...

Usually this happens service bills recevied late.. so for TDS there is no issue in this

Miss Rinkal

Student

1309 Points Joined January 2009

Yes it is correct to deduct tax at source on bill received date since at the same date, it is entered in his books of accounts. As per TDs provisions , Tax is to be deducted either at the time of credit to the account of the payee, or at the time of payment in cash, cheque, or by any other mode, whichever is earlier. 'credit' here implies the credit given to the deductee's ledger account in the deductor's books. I.e the bill received date