TDS on invoices

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Bala Abiramy (Querist)
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03 October 2008 Dear All,

In a situation where expenses invoices/bills pertaining to a particular month (say April 08)comes to A/cs dept in the month of aug 08 and gets duely accounted on the invoice date ,gets paid in the month of august itself less TDS.

Now whether the TDS be paid along with interest when it is paid on 7th sept or not?

Can the Invoice be accounted in the month of receipt in order to avoid interset?will there be any qualification as regards the TDS pmt without interest not paid in this case?

Guest

Guest (Expert)

03 October 2008 Better way is to get the confimation of letter from the supplier that the invoice is prepared in april,08 but the same is sent during the august, 08 and thereafter book the invoice during the august, so that you can avoice interest liability and also the same will not be covered under the tax audit report.

Bala Abiramy

Bala Abiramy (Querist)
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S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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03 October 2008 The invoice might have been dated August, but if you have proof that it was received only in August, or you approved it for accounting only in August, you can justify your action.

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
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04 October 2008 Tax will be deductible on the date in which the expenses is accounted for according to the method regularly followed by the assessee.If however the payment is made beofre such credit, TDS should be deducted on the date of payment.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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10 October 2008 Invoice date and accounting date may be different. Fully agree with Mr. Agrawalla's seasoned answer.