Tds

This query is : Resolved

vin1975

vin1975 (Querist)
Follow

25 November 2011 we have due the income of maintenance charges in F.Y.2010-11,but not recd in F.Y.2010-11 and also no provision for tds is made in that income . now in f.y. 2011-12 we had recd the income of 2010-11. can party deduct the tds on that income when he has paid

Aijaz Shaikh

Aijaz Shaikh (Expert)
Follow

26 November 2011 TDS should be deducted on credit or payment whichever is earlier.

If the party is following cash system of accounting it will deduct TDS on payment basis.

Even, he is following mercantile system, he can deduct tds when it is paid.