Regarding TDS

This query is : Resolved

rajesh (Querist)
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18 December 2009 Dear Expert,

we are having pending transport bills of last financial year i.e.2008-09, now we are accounting those bills in this FY.

my doubt is whether the TDS is to be deducted on such bills or not?

Deepali

Deepali (Expert)
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18 December 2009 If the TDS is otherwise applicable on these bills as per the provisions of the Income tax Act, then TDS needs to be deducted at the applicable rates irrespective of the period when expenses are incurred. TDS is to be deducted at the time of booking of the expenditure or payment, whichever is earlier. Further, this Transport Expenditure will be treated as prior -period exp but will not get dis-allowed. But if default is made in the deduction of TDS, it will get dis-allowed.