TAX ADVISOR & CONSULTANT AT G.S.T SUVIDH
1372 Points
Joined June 2012
As per TDS Provisions, Payment or credit which ever is earlier! Payment means actual cash outflow and credit means entry in books by crediting such amount in his account. There are certain exception to the above provision viz., Sec 192 (Salaries), 194B (Lottery winnings, Cross Puzzles e.t.c), 194BB (Winnings from Horse races) and 194LA (Compulsory acquisition of Immovable property). In those sections you have to deduct TDS on payment basis. In all other cases Payment or credit which ever is earlier. So if you pay advance payment then deduct T.D.S at that time and if you receive invoice first (i.e payment later) then deduct T.D.S on the date of receipt of invoice. For any furthur clarifications pls feel free to send me PM.