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TDS payment time

Ramachandran R (117 Points)

25 April 2022

Hi all,

We got service bill from our vendor for March month & payments were done in April month after deducting TDS part.

Now we should consider this as march month TDS or april month TDS.

Thanks in advance

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12 Replies

Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2015 Points)
Replied 25 April 2022

consider the bill for the month of March. So deduct tds as it is for March month

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CA Puja Sharma (Chartered Accountant) (4969 Points)
Replied 25 April 2022

If you recorded the bill in your books in March 2022, then TDS to be deducted in March 2022

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 25 April 2022

March bills generally given in April . So you may consider it as Tds for April if bill and payments are in April

1 Like

sabyasachi mukherjee (27107 Points)
Replied 25 April 2022

The Act says payment or booking whichever is earlier.

1 Like

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 25 April 2022

If both are April then whichever is earlier concept doesn't work

1 Like

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JJJ (Need help) (673 Points)
Replied 25 April 2022

Also keep in GST in mind if applicable.

March 3B dates due dates are gone. So you may need to book in April anyway.

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 25 April 2022

Kindly confirm date of bill/ tax invoice?

1 Like

sabyasachi mukherjee (27107 Points)
Replied 26 April 2022

Both happen at the same time rarely. if it is so it's upon the deductor to decide.

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 26 April 2022

Invoice of a particular month may not be issued in the same month if it is a service oriented

1 Like

sabyasachi mukherjee (27107 Points)
Replied 28 April 2022

It's on completion of the service. Generally as per norms all completed service invoices must be raised within 7 days after the end of month.

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debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 28 April 2022

If the deductors (other than office of government) deduct TDS in any month, tax must be paid on or before 7th of the next month. However, the TDS deducted in the month of March can be deposited till 30th April.

The due date for the TDS deposit for March is 30^th April of next Financial year. However, the due date for a Government Office is 7^th March.
Time Limit to Deposit Tax Deducted at Source.