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TDS not deducted

Athma Ranjan (service) (66 Points)

01 October 2009

Dear Freinds,

Due to some dispute, we could not make payment against a transporter's Bill of April '09.

Now, can we make the payment after deducting TDS ?

Can we deposit TDS as usual without any penalty ?

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3 Replies

Sunil Liladhar Kotak (Manager (F & A)) (2025 Points)
Replied 01 October 2009

i think the way out to this could be as mentioned below :

u book the bill in the current month & then make the TDS payment for the same as the clause is paid or accrued whichever is latter

Thanks,

sunil

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Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 01 October 2009

tds liability arises on due or payment basis whichever is earlier. U hd to deduct the tax at the time of booking of the bill & pay the TDS respectively. Though, u can book the aforesaid mention bill in the books in the current month in which payment is made.

regards,

ratan

aurangzaib khan (financial consultant) (95 Points)
Replied 01 October 2009

tds should have deducted when bill received. therefore at time credited to party you should have deducted TDS,it does not matter that you have made a dispute or not, in case of faliure to deduct such tds interest under section 201 @ 1% per month and penality undersection 221, 271C will also applicable.