Tds deduction on bill

TDS 803 views 9 replies

Dear All,

I requst you to all please give me the infomation about tds deduction from party on bill recieved or payment what is first.

 

sundhar

Replies (9)

you should deduct TDS when you received the bills.

 

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.

Agree with Mr. Swami.

thanks

Ramanuj


 

Basic Principle of deduction of TDS:-

You have to deduct TDS at the time of amount paid to party or party's a/c credited in books whichever is earlier.

 

Regards,

Shubham

 

 

In simple,

you have to deduct TDS when party accounts is credited or pament made to party, whichever is earlier.

Date of payment or date of entry in books of account whichever is earlier

Mr. Sundhar

As Subham & Arif above. and payment of TDS to the Department is before 5th of next moth.

with regards

PURNA

 

Originally posted by : PURNACHANDRA RAO Y
Mr. Sundhar

As Subham & Arif above. and payment of TDS to the Department is before 5th of next moth.

with regards

PURNA

 

Hi Purna, Please note the payment should be within one week of next month. not within 5 day.

Time of Deposit TDS for Non Govt. Deductor:-

TDS for the month of March

On or before 30th of April.

TDS for other months

On or before 7 days from the end of the month, in which tax deducted.

 

Regards,

Shubham


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