Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2014 please Clarify the following issues relating to Crediting in books of accounts and TDS.

Bill date is 31-03-2014,
Invoice Received date is 7-04-2014,
Payment date is 10-04-2014.
The above bill is service bill and TDS also Applicable under Sec 194 C as Contract.

please Clarify which date should be considered for deducting TDS and interest on late deduction of TDS if TDS is Deducted in the month of April and Paid on or before 7th MAy-14

Guest

Guest (Expert)

25 June 2014 tds will be deducted on following which ever comes first

1. booking of expense

2. any payment (advance ) made

which ever is earlier

so in this case if u had received bill on 7 u can enter that on 7 dear..

interest will be paid for whole month if tds deposited late for a single day @ 1.5 % per month

Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2014 Firstly Thanks for your Reply,Sir here my Doubt is on which date expense should be booked(crediting Service Provider).since the invoice date is 31-03-2014 relating to previous year,and service also received in the month of march itself,how can we shown as as expense in the month of April.

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Guest

Guest (Expert)

25 June 2014 u can ask the party to change the date of bill to 1st april if party gets agree for doing this......

and if its for april u had to creat atleast a provision na dear.... if ur b/s is not final u can enter the bill now also on date of 31st march na

Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2014 sir Please tell me the Consequences if it is newly set up branch and started their activities only from 2nd April-14

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