Tds under section 194j

TDS 523 views 4 replies

Where amount advanced is as a result of the contract to provide service whether TDS need to be deducted at the time of making advance payment or when the bill is created.

Replies (4)

TDS clause is applicable only when the expense is booked, 

if the advance is kept under "advance" without booking the expense, then TDS  would be applicable on the date of booking it as expense, 

if the payment is booked as expenditure on the date of advance itself, then TDS provisions apply immediately. 

Dear Hemanath,

 

Its depend upon on nature of transaction as if u have booked the expense then its mandatory to deduct TDS ELSE there is no such requirement

 

hope your query has been solved 

Originally posted by : Hemanth Ranka

Where amount advanced is as a result of the contract to provide service whether TDS need to be deducted at the time of making advance payment or when the bill is created.

 

TDS TO BE DEDUCTED

AS APPLICABLE EARLIER OF 

BILL BOOKED OR PAYMENT MADE

Tds should be deducted at the time of credit or payment which ever is earlier. 

If advance payment is being made and bill not booked no need to deduct TDS.

If Expense is booked then Tds needs to be deducted

 


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