Tds related query

I thnk liability of TDS will arise in year which you have booked expenses. Lets see other view also.

Tds will be done at the time of credit in the books or at the time of making payment whichever is earlier.

"Credit in the books" does it credited to party account ? If yes then TDS will not be applicable bcs it is credited to Outstanding Expense A/c in the year 2015-16

Section 194C clearly used the words "at the time of credit of such sum to the account of the contractor". Credit to a suspense account or any other account by whatever name called will also be treated as credited to party's account.
I hope your query is resolved.

It means TDS is not applicable in the year in which provision is made but applicable in the year in which provision is subsequently reversed to party account. Right ?

On combined reading of section 194C and the Provision of section 40(a)(ia) -Tax has to be deducted at source when amount is paid or credited to the account of the Payee whichever is earlier. When the amount is credited to suspense account or any account by whatever name it is called, then it is treated as amount is credited to the account of the payee and tax has to be deducted at source. Hence Tax has to be deducted at source even on provisions made in the books of accounts to which TDS provisions are applicable.

Thank you Harshal

My another query is if rent payable Rs. 1,80,000/- then TDS applicable or not ? My opinion is TDS is not applicable bcz threshold limit is Rs. 1,80,000/- Pls reply.

No deduction shall be made u/s 194-I where the aggregate of sum paid or credit in a F.Y. to the payee does not exceeds Rs.1,80,000.

Thank you for your timely reply 

The pleasure is all mine.