For 194C, If 'payment or credit entry' is made for example in Jan, due date will be 7th Feb.
What is due date in the following case:
A company has availed services of a contrator in the month of December and hence company is liable to pay the contractor in Jan. But the company has not passed entry crediting the contractor in Jan, instead it passed in Feb, now what will be its due date?
Is it correct to credit the party in Feb though company is liable to pay the party in Jan itself?
Yes, You can credit the party ledger in the month of Feb, but you need to deduct TDS from the payment made in the month of January and the due date for payment of TDS will be on or before 7th Feb.
Suppose Rs.10,000 is payable to any party (individual/huf).
Entry in Jan:-
Party's A/c Dr. 10,000/-
To, TDS u/s 194C A/c 100/-
To, Bank A/c 9,900/-
Entry in Feb:-
Expense A/c Dr. 10,000/-
To, Party's A/c 10,000/-
| Originally posted by : Pradeep Gupta | ||
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Yes, You can credit the party ledger in the month of Feb, but you need to deduct TDS from the payment made in the month of January and the due date for payment of TDS will be on or before 7th Feb. |
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I forgot to mention that company has not paid anything to that contractor in the month of Jan.
The company is just liable to the contrator as it has availed services from contractor in December, but comapny does not disclose liability in books for Jan. Instead company shows liability only in Feb.
Now, what will be due date if both payment and credit entry are made in February?
Due date for TDS payment will be on or before 7th March.
What are views of others?
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