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