When is TDS to be deducted?

Tax is to be deducted either at the time of credit to the account of the payee, or at the time of payment in cash, cheque, or by any other mode, whichever is earlier. 'credit'  imply the credit given to the deductee's ledger account in the deductor's books.

Very Rightly said by SSG. It is the day on which the credit is given in the books of accounts by the deductor or the day on which the payment is made by issuing the chq, draft etc whichever is earlier.

credit implies the day provision is made in the books of accounts

i agree to SSG. he is absolutely right

tds deducted ,if survice provide 

Tax is to be deducted either at the time of credit to the account of the payee, or at the time of payment in cash, cheque, or by any other mode, whichever is earlier

jitendra

cafinal.

What is the meaning of time of giving credit  to the  Account ?

TDS to be deducted at the time of booking bills or at the time of paying payment...?

for e.g. one of party giving security service in month of April and also bill made on April

TDS is deducted at the time of credit of deductee a/c in the deductor books or at the time of payment by the Deducter whichever is earlier.The same can be explained by the folowing example;

Suppose A  places  Advertisement in the Newspaper on 10th nov. and Newspaper sends the bill of Advertisement on 15th nov. but the payment is made on 20th dec.The TDS will be deducted on 15th Nov.

And not on 20th dec.

Dear Sir/Madam,

We have paid full amount against proforma invoice on 30-June-2014 (after deducting TDS) towards stall charges for an expo, the event is going tobe conducted in July'2014. Now the vendor is saying that they will issue invoice once event is finished i.e., July'2014.

My question is whether we need to pay TDS returns in the month of making payment(June'2014) or invoice issued month(in this case July'2014).

Kindly some one clarify. 

You should deposit TDS deducted in the month of June till 7th July.

Dear Members

Tax (TDS) is to be deducted at the time of payment or at the time of credit to the party account whichever is earlier. Credit to the account includes even if the amount is credit to Suspense a/c.

Forum query

We have paid full amount against proforma invoice on 30-June-2014 (after deducting TDS) towards stall charges for an expo, the event is going tobe conducted in July'2014. Now the vendor is saying that they will issue invoice once event is finished i.e., July'2014. My question is whether we need to pay TDS returns in the month of making payment(June'2014) or invoice issued month(in this case July'2014).

My Answer to the above query

The amount paid by the company to the vendor is in the nature of Advance against proforma invoice. You have correctly deducted tax from the said advance in compliance with the law. As and when you receive the bill account the same and close the advance. The said TDS has to be remitted on or before 7th July 2014. The tax deducted in the month of June 2014 falls under Quarter 1. Accordingly TDS return has to be filed on or before 15.07.2014 for first quarter).

with regards

Muralidharan

TDS return has to be filed on or before 15.07.2014 for first quarter.
 

Tax is to be deducted either at the time of Bill Recording, or at the time of making payment, whichever is earlier