Time gap between invoice raised date and accounting date

This query is : Resolved

nagaraja (Querist)
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29 December 2009 If invoice is raised on 1st September 2009 and the party is received the bill on 25/12/2009 and TDS is deducted on 25/12/2009. IS it OK as per ACt. Because there is around 4 months gap between invoice raised date and accounting date.

Rasesh

Rasesh (Expert)
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29 December 2009 Not a problem. because tax is to be deducted at the time of passing the invoice or making the payment whichever is earlier.

Bhavesh

Bhavesh (Expert)
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29 December 2009 Rightly said by Rajesh.
TDS is to be decucted on credit to accounts or payment whichever is earlier.

What you can do is pass the entry on Dec 25 only.

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