Tds liability

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
	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.

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?