We have received the bill dated 15-03-2018 and our policy is to pay the bill only after 60 days. We have booked this expenses for F.Y 2017-18 and we are making payment in F.Y 2018-19. My query is when do we need to deduct the TDS? is it when we book the expenses or when we pay the bill?
TDS has to be deducted at the time of credit or payment whichever is earlier.
However in following cases TDS has to be deducted while making payment.- Salary, dividends, winning from lottery or crossword puzzle, winning from horse race, payment in respect of deposits under NSC, payments in respect of repurchase of units by mutual fund or UTI , payment of compensation on aquisition of certain immovable property.
Thank you so much for your replies.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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