We know that TDS is to be deducted within 7 days of the month next to the month in which expense is booked. Does that mean that we may book an expense itself, say rent, late... to avoid late deduction of TDS?
Komal (Accounts Executive) (70 Points)
07 October 2009We know that TDS is to be deducted within 7 days of the month next to the month in which expense is booked. Does that mean that we may book an expense itself, say rent, late... to avoid late deduction of TDS?
CA SUDHAKAR
(CHARTERED ACCOUNTANT)
(189 Points)
Replied 07 October 2009
Generally, rent is being paid in the first week of the following month for whtch the rent is due. If you pass a provision entry for rent at the end of the month, say 30th Sept 2009, you should remit the TDS on or before 7th October, 2009. In case you are not making any provsion entry and accounting the rent on payment basis, you may remit the TDS on or before 7th Nov, 2009 on the rent related for the month of Sept, 2009.
However, rent for the month of March, 2010 should be provided on 31.03.2010 and TDS to be remitted on 7th April, 2010. Quarterly return should be filed accourdingly. First quarter includes 2 months rent and last quareter will includes 4 month's rent.
Rajeev
(www.rkmco.com)
(985 Points)
Replied 08 October 2009
Sudhakarji ,
If the provision is made on 31/3 , then Tds can be remitted by 31/5 . if provision made uptil 30/3 , then tds has to be remitted by 7/4 .By mistake you have written as 7/4 .
Sunil Liladhar Kotak
(Manager (F & A))
(2025 Points)
Replied 08 October 2009
Rightly said by rajiv.
pls go to the following link for all details in this regard.
https://incometaxmumbai.nic.in/taxpayer/tds.htm
Sunil
CA SUDHAKAR
(CHARTERED ACCOUNTANT)
(189 Points)
Replied 08 October 2009
Rajeevji,
As per my opinion and belief, period of 2 months for remittance TDS is applicable only to various year end provisions, such as yearly interest on loan, Yearly provision for audit fee and consultancy charges and yearly provision for commission etc. TDS in respect of Rent, salary, Monthly consultancy charges etc. should be paid on or before 7th April for the provision made on 31st March. We are making provision for salary on 31st March, then what will be the due date for remiitance of TDS, is it 7th April or 31st May ?
This is my opinion in respect of year end provisions and it is open for further discussion. Let us have final conclusion in this issue. Still I am having little confusion in this issue.
Thanks and regards
| Originally posted by :Sudhakar Shetty V. K. | ||
| " | Rajeevji, As per my opinion and belief, period of 2 months for remittance TDS is applicable only to various year end provisions, such as yearly interest on loan, Yearly provision for audit fee and consultancy charges and yearly provision for commission etc. TDS in respect of Rent, salary, Monthly consultancy charges etc. should be paid on or before 7th April for the provision made on 31st March. We are making provision for salary on 31st March, then what will be the due date for remiitance of TDS, is it 7th April or 31st May ? This is my opinion in respect of year end provisions and it is open for further discussion. Let us have final conclusion in this issue. Still I am having little confusion in this issue. Thanks and regards |
" |
Sudhakar sir
TDS on salary is deducted at the time of payment only and not at the time of making provisions.
Last date for remittance of TDS for 31st March is 31st May, For TDS up to 30th March last Date is 7th of next month.
As concern about salary the due date for remittance of TDS is 7th of next month it should not be treated as other TDS remittance.
TDS on salary should be deducted at the time of payment or credit, which ever is earlier. you should deduct tds while making provision on 31st march.
Rajeev
(www.rkmco.com)
(985 Points)
Replied 08 October 2009
Sudhakarji,
For all TDS arising out of provisions as on 31/3 , last date should be 31/5 . For any provisions for salary , TDS has to be deducted and paid when the salary payment is done , cos 192 specifically states TDS on salary has to be deducted on "Payment Basis" and not on credit / provision basis .
These are the following on which TDS is to be deducted on payment basis .At the time of Actual Payment
Tax is to be deducted at source at the time of actual payment in respect of the following payments: -
(a) Salaries
(b) Dividends
(c) Winning from lotteries, crossword puzzles, card games of other games
(d) Winning from horse races
(e) Payment on account of repurchase of units by Mutual Fund or UTI under section 80CCB
(f) Payment in respect of deposits under the National Saving Scheme
(g) Payment of compensation/consideration for compulsory acquisition of any immovable property(other than agricultural land)
Hope the confusion is sorted out .
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GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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