TDS on contractor

This query is : Resolved

rahul dave (Querist)
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01 December 2008 1)what is the implication when advance is given for making furniture and TDS is not deducted, TDS is deducted when bill is booked.

2)what is the implication if TDS is not deducted when advance is given and bill is booked in susequent year along with TDS payment
what is disallowed in both the case

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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01 December 2008 1. TDS needs to be deducted when bill is credited or amount is paid whichever is earlier. Deposit the TDS and adjust it later.

2. Nothing will be disallowed as you will book the bill in the next year.