Tds deduction

Page no : 2

GirishSPrajapati (Service) (70 Points)
Replied 15 April 2019

TDS is to be deducted earlier of (1) when creating creditors by accounting entry or (2) payment made

Bharat chandan (student) (158 Points)
Replied 15 April 2019

Hi Rudrayani,

First of all whole amount will not be disallowed only 30% of total amount will be disallowed in you don't pay TDS before end of the financial year (presuming you are paying to local vendor)

Second thing, you will need to pay interest under section 201(1A) for short deduction/payment. in simple manner it would be 1.5% of amount of short deduction for 3 months (as you will be filing return and include payment in next quarter hence there is 3 months delay)

Let me know if you have any query.

1 Like

smnti jain (39 Points)
Replied 16 April 2019

Originally posted by : CA. Kasi Reddy Nallappa Reddy
	Please clarify this payment done on 14/09.2018 is completely different from the payment mentioned earlier.

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 16 April 2019

the thing is we have done tds deduction on payment basis

to break this practice & to start with as per rule-payment or credit whichever is earlier (from f.y.2019-20) i need to close the previous transactions in f.y.2018-19

so whichever suppliers payments liable to tds deductions are unpaid as on 31.3.19, i will make tds provision on the same & shall deposit tds before 30th april & would show the same in return on Q4 of 2018-19

is it correct?

Pankaj Goel (15 Points)
Replied 17 April 2019

Originally posted by : CA. Kasi Reddy Nallappa Reddy
	Please clarify this payment done on 14/09.2018 is completely different from the payment mentioned earlier.