Where amount advanced is as a result of the contract to provide service whether TDS need to be deducted at the time of making advance payment or when the bill is created.
HEMANTH RANKA (Tax & Financial Consultants) (360 Points)
23 August 2016Where amount advanced is as a result of the contract to provide service whether TDS need to be deducted at the time of making advance payment or when the bill is created.
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 23 August 2016
TDS clause is applicable only when the expense is booked,
if the advance is kept under "advance" without booking the expense, then TDS would be applicable on the date of booking it as expense,
if the payment is booked as expenditure on the date of advance itself, then TDS provisions apply immediately.
ACA Anurag
(Enjoy the little things)
(14706 Points)
Replied 23 August 2016
Dear Hemanath,
Its depend upon on nature of transaction as if u have booked the expense then its mandatory to deduct TDS ELSE there is no such requirement
hope your query has been solved
Originally posted by : Hemanth Ranka
Where amount advanced is as a result of the contract to provide service whether TDS need to be deducted at the time of making advance payment or when the bill is created.
Balram Choudhary
(Sr. Accountant)
(112 Points)
Replied 23 August 2016
TDS TO BE DEDUCTED
AS APPLICABLE EARLIER OF
BILL BOOKED OR PAYMENT MADE
CA.Vinita Gupta
(Deputy Manager- Finance)
(2923 Points)
Replied 24 August 2016
Tds should be deducted at the time of credit or payment which ever is earlier.
If advance payment is being made and bill not booked no need to deduct TDS.
If Expense is booked then Tds needs to be deducted
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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