TDS Deduction

Vijay Patil (accountant) (47 Points)

02 July 2009

I want to know whether TDS deduction should be made on payment made or party's bill received amount..

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RAMANJU (here to updating the knowledge) (485 Points)
Replied 02 July 2009

Tax should be deducted at source at the time of payment or crediting the party in your books whichever earlier.

Amey (Service) (137 Points)
Replied 02 July 2009

Hi Vijay

Tax is to be deducted on amount paid or amount booked as expense which ever is higher.

If payment is made in advance, tax will have to be deducted at the time of making advance payment.

And if bill is booked, tax is to be deducted on the amount of bill at the time of booking.

Tax is deducted at either of two events given above which ever occurs earlier.

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