Tds rules for delayed payments to vendors

Anil (Co-Founder) (27 Points)

29 October 2018  

Hello, 

My query is regarding TDS rules for delayed payments to vendors -

Case 1 : Vendor raised invoice for professional services in the month of Nov 17. Payment is done to vendor in the month of Sep 18. Can we deduct TDS  @ 10% in Sep 18 and is there any interest applicable on TDS in this case ? Can this expense be shown in FY 17-18 ?

Case 2: Vendor raised invoice in the month of Nov 17. Company recorded the expense but not paid it to vendor and filed ITR showcasing this expense. Company paid the vendor after ITR is filed. Will TDS be same @ 10% ? Any charges /interest for TDS ?

 

Thanks