TDS on provision of expenses

This discussion clarifies the rules around Tax Deducted at Source (TDS) on provision of expenses. TDS is payable even on provisional expenses, whether an invoice has been received but not yet certified, or if the provision is based on an estimated value of work where an invoice is pending. The key principle is that TDS must be deducted either at the time of payment or when the expense is credited to the account, whichever occurs first.