tds query

This query is : Resolved

Report Abuse Follow Query Ask a Query

Ashraf Ali

Ashraf Ali (Querist)
Follow

16 July 2010 if date of bill is 30 th dec and date of payment to party is 08 th dec when tds is deducted

Rahul Gupta

Rahul Gupta (Expert)
Follow

16 July 2010 Generally, it happens very rarely that you make full payment before the services are offered and bill is raised.
In case, it happens, then my view is make the net payment i.e an estimated amount of TDS should be deducted at the time of payment. Although it is not to be shown as TDS deducted on payment time i.e 8th Dec. TDS deducted should be booked on the date of invoice and accordingly on 30th dec the invoice is fully paid with the deduction of TDS.