When to Deduct TDS?

Santosh V. Thakur (Sr. Accountant) (187 Points)

21 June 2012  

When to TDS deducted?

If we make payment to party/person, but we are not sure that payment will exceed the limit (eg. Payment for Prof.fees- limit Rs.30000/- p.a.), then what is procedure to follow.

1. Deduct the TDS at time of Invoice/Advance?

Or

2. Wait for invoice exceed the limit (until not deduct TDS), when exceed limit , then TDS deduct on entire bill(s) of Financial year of party?

 

Kindly suggest.

Thanks..

Santosh Thakur