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TDS not deducted on due date

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Shudhanshu Agrawal

Business

2575 Points Posted on 30 December 2009

As we all know that TDS is to be deducted

1. At the time of credit ,or

2. At the time of payment

whichever is earlier (except salary)

My question is there is a bill which was booked in May 2005 but TDS was not deducted on the same. TDS was deducted in May 2009. If we find such an entry in audit what we should do?? please also discuss its tax consequences with reference to Sections and case laws, if any

Replies (2)

ketan

Practice

35 Points Posted on 30 December 2009

Dear friend

As per your case if bill is raised in may 2005 and on which no tds has been deducted the said expenses on which tax has to be deducted but not deducted has to to be disallowed and and it has to allowed only when tds has been deposited into goverment authority .............