Tds

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Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2011 DEar sir,

can we deduct tds on advace. if yes,tell me how?

tahnks & regards,

avinash korde.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 September 2011 TDS to be deducted on date of payment or credit whichever is earlier.

So in case you make advance payment on account of expenses which attract TDS you need to deduct TDS on such advance payment as per applicable rates.

VISHRUT

VISHRUT (Expert)
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21 September 2011 Yes TDS must be deducted on Advance as liability of TDS arise in either case being earlier Payment or Credit so it will cover advance also.

It will be deducted in regular manner only and deposited to Goverment.

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CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
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21 September 2011 Yes you can deduct TDS on advance payment. If you are using SAP like accounting ERP just put the required info., else manually you can do so by Debiting the Vendor Account by Full Value of Advance and Crediting the TDS Payable account to the extent TDS deductable and remaining amount crediting as BANK account (the balancing).

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2011 Dear sir,

thanks for my query but in cash of supply of material.

thanking you

avinash.

CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
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21 September 2011 Dear Avinash
Please clarify which material supply is liable to TDS?
Any advance payment to a party (vendor) which is as against the payment subjected to TDS needs a deduction on the basis of payment or credit whichever is earlier.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 September 2011 NO TDS not applicable on supply of materials.