Dear Friends,
One of My Client having Practice to deduct TDS on Bill received date (i.e Credit Client's A/c) instead of date mentioned in bill.
For Eg:- Expense Bill of Custom House Agent dated 25.09.2015 but actually bill received on 10.10.2015 it means after due date of TDS Payment of September (i.e 07.10.15) So due to this TDS not dedcuted on september month & no deposit of tds upto 07.10.15.Hence ,TDS Interest will be levied as per prescribed section.
So for escaping Interest on tds they are used to deduct tds on bill received date (i.e 10.10.15) & affixed received date stamp & deposit tds on next month (i.e upto 07.11.15) .
My Query :- Is this Practice to deduct tds on bill received date correct as per tds provisions ?
Kindly Reply
Thanks in Advance