No monthly deduction & depositing TDS. Is there any default?

This query is : Resolved

Goongan (Querist)
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22 January 2011 Dear All,
Our monthly bill on advertisement from a party (Firm) is Rs 20,250/-. We paid on Dec 2010 for 9 months Rs 178605/- (182250-3645) (after dedicating TDS @ 2% at the time payment), also we deposit TDS rs 3645/- in dec. 2010 instant of monthly deduction & deposit. Is there any default?

Vivek Raju P

Vivek Raju P (Expert)
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22 January 2011 TDS has to be deducted on credit of the amount to the suspense account or to the credit of the payee.

The mere fact that bill of nine months is paid in dec will not warrant deduction at that time.

I believe there is a default u/s 194C

Goongan

Goongan (Querist)
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22 January 2011 Can I show all the bill of nine month in the month of dec 2010 for non default sec 194C.

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Ratan Sharma

Ratan Sharma (Expert)
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22 January 2011 All depends on the condition that when you have debited advertisement exps account. If you have monthly debited the advt. exps then there is a default in TDS but if you have booked the expenses in the month of Dec. 2010 then there is no default of TDS.