Tds liability in case of provisional retainership charges

TDS 878 views 2 replies

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?

 
 
 
 
 

 

Replies (2)

Tax must be deducted at the time of payment in cash or cheque or credit to the payee's account whichever is earlier. Credit to payable account or suspense account is also considered to be credit to payee's account and TDS must be made at the time of such credit.

Thank you Mr. Prateekk for response. If you are aware please mention if there are any case law regarding this provision.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register