We operate in the telecom sector and frequently receive bills late. For instance, September bills are often submitted after October 10th and fall under sections 194C or 194J. We close our September 2024 TDS calculations by October 7th and remit the TDS amount for that period.
When we receive a bill late, we typically record the receipt date as the bill date in our books and consider the TDS for the following month. However, we are unsure if this practice is legally correct. Our auditors have indicated that it is acceptable to use the receipt date for accounting purposes and that TDS should be paid accordingly.
Could someone clarify how to properly handle this TDS issue?
CAclubindia
