Himanshu Dave (Learner) (55 Points)
04 May 2012Dear Experts,
I have confusion w.r.t. TDS deduction.
Scenario: Say for example vendors provides services for Apr-Jun and raises invoices only on Dec having invoice dated end of June.....
1. When to do booking of invoice?
2. If invoices is booked on receipt date and not on invoice date when to deduct TDS?
3. If monthly provision is done from Apr to June when to deduct TDS?
Request you to please provide me your valuable reply.
Thanks, Himanshu Dave
Regit
(CA.Final)
(320 Points)
Replied 04 May 2012
As per Point of Taxation rules, in this case, TDS has to be paid whenever invoice is raised or payment is received, whichever is earlier.
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 04 May 2012
TDS has to be made at the point of credit or payment whichever is earlier. In case you pass monthly entries, then you need to deduct TDS on monthly basis. But if you are booking the invoice in December, then tax has to be deducted in december only.
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