TDS on cash system of Accounting

how does the tds provisions apply for a business whose accounts are maintained on cash basis ??????
Replies (5)
Quick Summary
This discussion clarifies the application of Tax Deducted at Source (TDS) for businesses operating on a cash basis of accounting. While TDS is generally deducted upon payment or credit, whichever comes first, for cash-basis entities, the deduction and payment typically occur at the time of actual payment. It's also noted that cash withdrawals from a bank exceeding £1 crore may be subject to TDS, which is a separate consideration from cash basis accounting itself.

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.
Yes in case of cash basis TDS should be recorded when it is paid
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CASH WITHDRAWN FROM BANK IS SUBJECTED TO TDS IF IT IS IN EXCESS OF Rs. 1 crore.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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