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Tds rules for delayed payments to vendors

TDS 228 views 1 replies

Anil

Co-Founder

27 Points Joined September 2017

Hello,

My query is regarding TDS rules for delayed payments to vendors -

Case 1 : Vendor raised invoice for professional services in the month of Nov 17. Payment is done to vendor in the month of Sep 18. Can we deduct TDS @ 10% in Sep 18 and is there any interest applicable on TDS in this case ? Can this expense be shown in FY 17-18 ?

Case 2: Vendor raised invoice in the month of Nov 17. Company recorded the expense but not paid it to vendor and filed ITR showcasing this expense. Company paid the vendor after ITR is filed. Will TDS be same @ 10% ? Any charges /interest for TDS ?

Thanks

Replies (1)

Pankaj Sarkar

146 Points Joined December 2016

tds should deduct on due or payment which ever is earlier... if expenses booked in nov'17 ..it should be deducted in that month only..no matter when u paid.. interest will attract if not deducted...and expenses will disallow in FY 17-18.

if u not booked in FY 17 -18... booked in 18-19..it will allow in 18-19..show as prior period expenses.