Whether TDS applicable on advance

TDS 12665 views 10 replies

Whether any sum paid as advance to contractor is liable for TDS deduction. In case the contractor has not started work whether TDS is deductible on advance to contractor. What are the Income tax rules/judgement in this regard.

Replies (10)

as per rule t.d.s is liable to be deducted at the time for payment or at the time of credit whichever is earlier

so as per this t.d.s should be deducted on advance payment.......

Yes, Advance payment is liable for deducting TDS. As per IT  "Payment or Credit which ever is earlier"  as per this rule if  payment made without credit it called advance.

tds is applicable on advances

As per the provision of Income Tax Act, Payer shall deduct tax, at the time of credit in books or payment, whichever is earlier. therefore TDS is applicable on advance.

Tds is deducted at the time of payment or at the time of credit whichever is earlier. 

Yes TDS is the deduction from the total amount either its As advence or on or after delieveries.

thnx

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Yes TDS is to be deducted at the time of payment whether it be advance. part or final payment, since as per rules TDS is deducted at thetime of payment or credit whichever is earlier.

Yes, there is TDS on advance payment .

TDS is to be calculated on

-- Advance Payment

               or

--Entry in the bboks

 

whichever is earlier.

Just see section 194c

OK

 

If bill will receive in next financial year and the advance payment made in Current Financial Year.

Then what should we do...?

 


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