12 April 2011
Dear Bijay TDS IS Deducted on Paymnt basis not on due basis . There is no need to deduct TDS from the provision of expanses that made at the end o year . Thanks
12 April 2011
Dear Sir, I understand that TDS has to deducted which ever is earlier payment or invoice booked but this is diffirent thats-why the confusion was created. thanks for your valuable time or suggestion.
12 April 2011
Only TDS on salary is deducted on payment basis. rest all are deducted on due basis only. Since accrual of expenses will be made in the year end TDS has to be deducted on the expenses to be provided. In that part reply of subhash is incorrect.
12 April 2011
Some more confusion have been created by this reply, suppose we have to pay an advance to a party then we have to deduct TDS on the same at the time of payment,
I think payment of due which ever is earlier TDS will be deducted.
and one more thing on which basis we can deduct TDS on accual Expenses? may be we can write-off the accrual in the comming years
Your understanding is correct. TDS is to be deducted on payment or credit , whichever is earlier.
Further, even if you are not clear about the exact amount of expense & are making only a provision for such expense, there also TDS , needs to be deducted.
For your information, Credit to payable account or suspense account is also considered to be credit to payee's account and TDS must be made at the time of such credit.
12 April 2011
Addedum to the reply above by me that Only TDS on salary is deducted on payment basis. rest all are deducted at the time of payment or credit whichever is earlier.
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