We have to deduct and pay TDS when amount credit in our books or payment done which ever is earlier as you are saying if assessee follows cash basis of accounting then TDS has to deduct and pay at the time of payment only.
TDS PROVISIONS ARE NOT APPLICABLE FOR ONLY CASH BASIS. TDS MEANS TAX DEDUCTED AT SOURCE . CASH WITHDRAWN FROM BANK IS SUBJECTED TO TDS IF IT IS IN EXCESS OF Rs. 1 crore. CASH BASIS ACCOUNTING IS ENTIRELY DIFFERENT.
In my view, if we see TDS Sections they said TDS to be deducted payment or credit whichever is earlier , so I think TDS to be deducted at the time of payment.
If someone has deducted your TDS and payments is not received that means you have not recorded your income then you should not record the TDS, and while filing Income Tax return, You can carry forward the same.
Raj payment or booking of bills can be on accrual basis . Since the query is based on cash basis, tds is applicable on both cash or accrual basis. Tax is deducted at source for contractors , third parties. z
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