TDS ON ADVANCE PAYMENT

yes , TDS will be deductable on Advance pament under respective Section fo rpamet.

TDS to be deducted at the time of payment or credit whichever is earlier. When the TDS is made on advance payments that can be adjusted while booking the bill against that advance payment whether in the same financial or in the next financial year.

TDS needs to be deducted at applicable rates for respective assessees on advance payments. If advance payment is returned at a later stage, there is going to be no issue as the other party is going to claim it. Give adequate info in your TDS certificate.
 

As Raghuraj said TDS has to be deducted at the time of payment or credit whichever is earlier. If you are doubtful whether you are going to avail services or not and going to refund such advances then don't pay TDS. wait until you finalise your terms and conditions and then pay together with interest any which way u r not going to claim as expenses in which year you have given advance. If you paid also then you can adjust the same for another payment also. it is not bound by department that payment should be for that expenses/advances. so you have time till completion of year. you can adjust anytime. 

Think about this and Please confirm me friends if i am wrong.

Thanks

Advance to professionals will attract tds or not ?

Deducting TDS from advance payment should be left to the discretion of the person concerned, because in case TDS is deducted and contract is cancelled, the administrative work following the rectification is doubled.

As per the tds provision of income tax act,(Expanses  Due or paid, whichever is earlier ) Assessee shall deduct TDS & deposited in time to avoid penalty and interest on late payment if assessee makes ANY ADVACE PAYMENT to any person whom TDS to be deducted.

In case amount paid is refunded, then than assessee charge, such tds amount paid to department, from the person whom payment was made. Because amount so deposited is credited into the A/c of the person whom ADVACE PAYMENT is made. He can view this credit in 26 AS.

Thanks 

Prakash mehta (cma final.)

what if TDS not deducted on Advance payments ?

Plz reply to my query

I am a machine manufacturer, I recveived advance payment with purchase order from the party for Machinery Sale. if there is any TDS amount dedected by the party . pls clarify

Hi,

As per the general Rule of TDS, it is liable to be deducted at the time for payment or at the time of credit whichever is earlier.

Therefore, TDS should be deducted on advance payment,

Read more at: https://www.caclubindia.com/forum/whether-tds-applicable-on-advance-30585.asp

TDS is deducted at the time of payment or credit - whichever is earlier