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TDS OF CREDIT OF PAYMENT

Sourav Kumar Singh (Accountant) (33 Points)

13 April 2021

Hello sir

I have one query for Tds law

When Tds to be deducted at the time booking the invoice in the books or the invoice date of the vendor ?

I received a invoice from A on 10 th of jan and I booked that invoice on 30 th march when should i pay the tds ?

From feb or from April

Please resolve

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9 Replies

Ankit Neema (2742 Points)
Replied 13 April 2021

Please Mention the nature of Transaction

Sourav Kumar Singh (Accountant) (33 Points)
Replied 13 April 2021

Invoice of contractor 100000/-

CMA Poornima Madhava (CMA) (13097 Points)
Replied 13 April 2021

Tax to be deducted at source on the date of book entry or payment, whichever is earlier. If you have made payment before book entry, then such date of payment else 30th March.

2 Like

Ankit Neema (2742 Points)
Replied 13 April 2021

194 C tax required to be deducted

1 Like

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 13 April 2021

Any person making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such specified payment.

From April on 30th March should be deducted

Mariappan (Student CA final new) (105 Points)
Replied 14 April 2021

For march2021 expenses (man power supply contract) bill received in April and payment made in April booked in March 2021 which tds rate applicable 2% or reduced rate 1.5%(covid rate)?

Tarak Shah (Chartered Accoutants) (105 Points)
Replied 14 April 2021

TDS to be deducted at the time of booking of expenses or crediting the payment which ever is earliest. So in your case, TDS to be deducted when you booked the invoice in your book.