Tds liability in case of provisional retainership charges

Dipendra Prasad Poudel (Article Assistant ( Internal Audit) )   (578 Points)

13 May 2014  

Situation :- A company has to pay "monthly"  Retainership charges to a Professional on the production of Invoices raised by concerned Professional therefore company is making provision at the end of the every month without deducting TDS and deducting TDS at the time of payment/invoice raised by professional only.

Query :- Is company making any default regarding TDS complianes as expalanation (c ) to section 194J says any sum credited to any account, whether called “suspense account” or by any other name, in the books of account of the person liable to pay such sum, such crediting shall be deemed to be credit of such sum to the account of the payee and the provisions of this section shall apply accordingly.

should company deduct TDS at the time of makin Provision or making Payment?