Tds dedction from when
This query is : Resolved
07 April 2018
I am cloth merchant. FY 17-18 is my first year of audit. Should i deduct tds on job work bills dated in 17-18 which are being paid in 18-19. please clarify from when to begin tds deduction on payments
07 April 2018
You have to deduct TDS Accounting. Bill or Payment Whichever is earlier .So you to deduct TDS for FY 2017-18,
08 April 2018
ty for your reply.need further clarification. i was told that it is not mandatory to deduct tds for the first year of audit. so i didn't apply for tds no. in FY 17-18. I applied in FY 18-19. Should i start deducting tds for the bills of FY 17-18 as i am paying them in 18-19 or only for the bills of FY 18-19.
27 July 2025
Great question! Here's how it works:
---
### When to Deduct TDS — Key Point:
**TDS should be deducted at the earlier of:**
* **The date of payment, or**
* **The date of crediting the amount to the supplier’s account (or bill date).**
---
### For your case:
* Since your **FY 2017-18 is the first audit year**, you might have been under the threshold before that, so TDS deduction might not have been mandatory before FY 2017-18.
* You got your TDS TAN in FY 2018-19.
* Now, you have **job work bills dated FY 17-18, but payment is in FY 18-19**.
---
### What to do?
* You **should deduct TDS in FY 2017-18 if you credited or made payment for those bills in FY 17-18**.
* However, **since the payment is made only in FY 18-19**, and you didn’t deduct TDS earlier (and also didn’t have TAN), you will need to start deducting TDS **from FY 2018-19 onwards**.
* You **do NOT need to go back and deduct TDS on old bills of FY 17-18** that are paid in FY 18-19.
* From now on (FY 18-19 onwards), you **should deduct TDS on payments made**.
---
### Summary:
| Scenario | TDS Deduction Required? |
| ---------------------------------------------------------- | ---------------------------------------------------------- |
| Bill dated FY 17-18, paid in FY 18-19 (no TAN in FY 17-18) | Deduct TDS in FY 18-19 at payment time, no need to go back |
| Bills dated & paid in FY 17-18 | Deduct TDS in FY 17-18 (if TAN and threshold met) |
| Bills dated & paid in FY 18-19 | Deduct TDS in FY 18-19 (with TAN) |
---
---
### When to Deduct TDS — Key Point:
**TDS should be deducted at the earlier of:**
* **The date of payment, or**
* **The date of crediting the amount to the supplier’s account (or bill date).**
---
### For your case:
* Since your **FY 2017-18 is the first audit year**, you might have been under the threshold before that, so TDS deduction might not have been mandatory before FY 2017-18.
* You got your TDS TAN in FY 2018-19.
* Now, you have **job work bills dated FY 17-18, but payment is in FY 18-19**.
---
### What to do?
* You **should deduct TDS in FY 2017-18 if you credited or made payment for those bills in FY 17-18**.
* However, **since the payment is made only in FY 18-19**, and you didn’t deduct TDS earlier (and also didn’t have TAN), you will need to start deducting TDS **from FY 2018-19 onwards**.
* You **do NOT need to go back and deduct TDS on old bills of FY 17-18** that are paid in FY 18-19.
* From now on (FY 18-19 onwards), you **should deduct TDS on payments made**.
---
### Summary:
| Scenario | TDS Deduction Required? |
| ---------------------------------------------------------- | ---------------------------------------------------------- |
| Bill dated FY 17-18, paid in FY 18-19 (no TAN in FY 17-18) | Deduct TDS in FY 18-19 at payment time, no need to go back |
| Bills dated & paid in FY 17-18 | Deduct TDS in FY 17-18 (if TAN and threshold met) |
| Bills dated & paid in FY 18-19 | Deduct TDS in FY 18-19 (with TAN) |
---
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