Tds on salary and proffessional fee

TDS 596 views 7 replies

sharon s

Accounting Associate

66 Points Joined August 2013

Hi Dear Members,

Currently iam working with a Private Ltd Company incorporated under companies Act 1956.My Doubts is.

We hired some professional services from an another firm those engaged in IT field.Actually the are our sundry creditors for long time .Right now they send a bunch of invoices generated in 2014 Aug,sept,.....etc months.

All are above one lakh Rupees .But we are going to make payment now.so My doubt is under sec194J TDS is to be deducted at which time.

Please clarify the point of taxation with the above example.

Thanks

Regards

Replies (7)

Raphael

Chartered Accountant

214 Points Joined January 2009

Dear Friend,

TDS has to be deducted at the time of credit or payment whichever is earlier. Hence, in your case as you have not accounted the bills earlier, the TDS will have to be deducted at the time of accounting such bills in your books now.

sharon s

Accounting Associate

66 Points Joined August 2013

But all the invoice are dated as the month they due... Or generated..

Rajinder Verma

Officer Account

34 Points Joined November 2014

No issue you just booked as per your received date and decduct TDS as per rule

sharon s

Accounting Associate

66 Points Joined August 2013

so you people telling that invoice date is not important .

Rajinder Verma

Officer Account

34 Points Joined November 2014

In case date of invoice say 30 June 2014 and you receive the bill on date 31 Jan 2015, you pass the entry on 31 Jan 2015 and the date of dedcution should be 31 Jan 2015.

Decduction should be on the basis of date of payment or credit whichever is earlier.

Arif Ali

Apt Co Advisory

1230 Points Joined June 2009

Hi Sharon, make the entry for TDS on which date you are credit the party accounts. It is not matter that bill date is old. Show these all bill on date when you have received and make the provision for TDS as per TDS law i.e. on credit or payment whichever is earlier.

Vishal Goel

Chartered Accountant

1693 Points Joined April 2014

Hello,

Date of payment or credit, whichever is earlier will be taken as relevant date for TDS.

So payment or booking of bill will be the dates for TDS.

You may receive a bill & you follow a policy of booking it only when it is approved by the authorized person. So booking date possible after the bill date.