Tds under section 195

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2016 Hi Experts,

Please clarify me, TDS u/s 195 when to be deducted? Either at the time of booking of expense /Payment whichever is earlier or at the time of payment.

Unnikrishnan B

Unnikrishnan B (Expert)
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19 September 2016 As per the case law International Hotels Ltd vs ITO it was decided that mere accrual of income in the hands if foreign company would not be sufficient reason for tax deductors liability u/s 195
So the TDs to be deducted at the time of income is credited to the account of payee or actual payment of the same whichever us earlier
In your case when you enter into the books if accounts TDs to be deducted
Thus is what I understood of this case law

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Unnikrishnan B

Unnikrishnan B (Expert)
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19 September 2016 Means at the time of recording the transaction in the books of account tds to be deducted

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