Tds deduction

CA. Kasi Reddy Nallappa Reddy (Chartered Accountant)     15 April 2019

Please clarify this payment done on 14/09.2018 is completely different from the payment mentioned earlier.

Rudrayani Shedjale (Assistant Accountant)     15 April 2019

the transaction is like this

payments from 21.7.18 to 7.9.18- Rs,1,20,000/- (every time deducted tds on payment amount)

expense booked on 14.9.18-Rs.3,20,065/-

payment made on 14.9.18- Rs,1,50,000/- 

tds to be deducted on which amount? ( i have deducted on Rs.1,50,000/-)

Giridhar S Karandikar (Team Lead)     15 April 2019

TDS always needs to be done on expenses incurred. so to be done on 3,20,065

Rudrayani Shedjale (Assistant Accountant)     15 April 2019

here it should be on expense amount Rs.320065/-less tds already deducted on Rs.120000/-i.e.on Rs.200065/-?

SAIKUMAR CHIRRAM   15 April 2019

TDS should always be deducted on expense incurred irrespective of payment made in respect of such expense

Giridhar S Karandikar (Team Lead)     15 April 2019

however in case of advance given, TDS shud be done on actual advance paid since TDS needs to be done at time of payment or credit whichever is earlier.
TDS should be adjusted at the time of raising the final bill and deducted accordingly

Chhalani and Associates (CA - www.cachhalani.com)     15 April 2019

TDS should be deducted at the time of payment / credit to party account. In your case it should be deducted on balance Rs. 2,00,065/-

Rudrayani Shedjale (Assistant Accountant)     15 April 2019

but now the f.y.has been closed i have deducted tds on Rs.1,50,000/- instead of Rs.2,00,065/-

how to rectify this?

Giridhar S Karandikar (Team Lead)     15 April 2019

you need to file revised return by paying the shot TDS to the govt and reporting the same in the TDS return