Tds-salary

This query is : Resolved

P.C. Joshi (Querist)
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11 July 2015 Dear Friends,
As per my knoweldge, TDS on salary is required to be deposited on payment of salary to staff unlike TDS on other items which is required to be made either on credit or payment whichever is earlier. When a company is required to deposit TDS against salary of a director who is entitled to draw salary but does not draw salary for many months or draw salary randomly but company is making provision for his salary in books of accounts on monthly basis.

For example during FY 2014-15 the salary in the books was provided for Rs 18 lacs whereas actual salary paid to him only Rs 6 lacs.Whether the company is required to deposit TDS on 18 lacs or Rs 6 lacs.

Regards,

PC Joshi

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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11 July 2015 TDS is on payment or credit basis, whichever is earlier.
Here, credited to his account as 'Salary payable' comes first. Hence you will have to pay on the 7th of the succeeding month in which you had made the entry in the books of accounts.

I.e, on Rs. 18 Lakhs.