Go AD-Free with CAclubindia Pro and get a FREE CCI Coffee Mug. Subscribe Now!

Mode of tds payment

AMIT NATH (ACCOUNTANT) (40 Points)

14 November 2011

If TDS is deducted and deposited the same at the time of payment instead of against bill though the bill is received earlier then it will be any fault according to rule? also it has been observed that this process for deduction of TDS is being followed by our company for a long period. So should we change the mode of deductioin and payment of TDS. Will be there any Interest on TDS for not being deducted at the time of bill raised?

Reply
Follow
Share

3 Replies

ashish gupta ( student) (1922 Points)
Replied 14 November 2011

you have to deduct TDS at the time of payment or at the time of crediting the amount to the account whichever is earlier. Even if you receive the bill earlier but you have not credited the account then there is no responsibility to deduct the tax

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

swathi (Accounts Officer) (349 Points)
Replied 07 December 2011

Deduct TDS at the time of payment or at the time of crediting the amount to the account whichever is earlier at applicable rates. There is no penalty for non deduction of TDS for bill raised but amount was not received. Amount paid without deducting TDS is liable to pay interest for 1% per month or part of month on TDS amount actually need to deduct..