When to deduct tds

TDS 548 views 2 replies

A Security Services agency has raised Invoice of Rs. 90,000 in February 2013 for services provided in January. The service recipient made payment to Security Services agency in May 2013. 

 
So when should the recipient Deduct TDS for the amount?
 
1) When bill was raised? 
2) When Recipient entered in books of account?
3) When payment was made?
Replies (2)

Payment or Accrual which ever is earlier....

 

Also, why are you posting same questions in both Forum and Expert section??

When it becomes due. It became due when you entered the bill in your books of accounts, which is before you make the actual payment.


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