Due date of payment of TDS on Salaries

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2010 As per standard accrual principal, a company passes JV for salary payable on the last date of every month and consequently liability for TDS is also booked on the last date of every month.

Now say for TDS on salary for July - credited to salary payable account on 31st July 10 but actually paid on 7th of Aug 10, will the due date for depositing TDS be 7th Aug 10 (i.e. within 7 days from the date on which the liability is created) or 7th Sep 10 (i.e. within 7 days from the end of the month in which salary is paid)

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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12 August 2010 It will be on 07/08/10

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2010 What if the JV is pased on the date of payment?

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CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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12 August 2010 7/9/10

sachin alwadhi

sachin alwadhi (Expert)
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12 August 2010 AGREED

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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12 August 2010 IT IS BETTER TO PASS SALARY ENTRY AT THE END OF MONTH BECAUSE YOU CAN KNOW ABOUT PROFITABILITY OF THAT MONTH. IF YOU PASS SALARY ENTRY FOR THE MONTH OF JULY IN AUG WHEN PAYMENT IS MADE, ONLY ONE TIME IMPACT ON PAYMENT OF TDS I.E IT WILL BE 7/9/2010
FROM NEXT MONTH AUG PAYMENT DUE IN 7/10,

HENCE IT IS BETTER TO BOOK SALALRY IN THAT MONTH FOR WHICH IT IS RELATED.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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12 August 2010 Agreed.. in any case, you have to ensure that the payment of salary for March month have to be booked within the month of march only.