Deduction of tds

This query is : Resolved

Meenu Agarwal (Querist)
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21 August 2012 When is the liability to deduct TDS arises, On accrual basis or at the time of payment?

For eg. the rent of Rs. 80,000 for april, may, june, july & August is paid together during september. What is the due date for deposit of TDS?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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21 August 2012 TDS is required to be deducted at the time of paymnet or credit, whichever is earlier.

Hemant Kumar

Hemant Kumar (Expert)
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21 August 2012 TDS is to be deducted either at the time of payment or to be credited whichever is earlier.

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Meenu Agarwal

Meenu Agarwal (Querist)
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21 August 2012 Can you give me the answer with respect to my example?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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21 August 2012 If the landlord raises a monthly bill, let say, on the last day of the month & the bill is booked on the same day then TDS is required to be deducted as follows:

April - 30th April
May - 31st May
June - 30th June
July - 31st July
August - 31st August

Meenu Agarwal

Meenu Agarwal (Querist)
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21 August 2012 Landlord has not raised any bill till date?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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21 August 2012 Do you have a rent agreement? Does the rent agreement specify that the paymnet is to be made on a monthly basis?

If yes, then TDS is to be deducted on monthly basis.

Meenu Agarwal

Meenu Agarwal (Querist)
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21 August 2012 Lease agreement is there and it is mentioned that monthly payment is to be made. But TAN has been allotted later. Do I Had to pay TDS before allotment of TAN also?

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CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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21 August 2012 From Here Now You Make Practice to Deposit TDS Amount of Rent By 7th of Next Month.Whether You Made Payment of Rent or not, Doesnt Matter.