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TDS-Whichever is earlier

TDS 573 views 2 replies

vijaya kumar n

JOB

488 Points Joined July 2009

Good Evening to All,

I Have one doubt regarding the TDS, we have received the Consultancy Bill on Feb 2010 but we made the payment as on April 5th 2010 and also we deducted TDS 10% for what we have made the payment

One of My friend told......In TDS payment case, whichever is earlier means either bill date or Payment, iwe need to deposit the TDS to the Govt..............................???????????????????

Above statement is true or not?????????????

Replies (2)

chandra sekaran

chartered accountant

44 Points Joined October 2008

Yes. Your friend is correct. According to secion 194J of the Income Tax Act, Tax is to be deducted at source at the time of credit of such sum to account of the payee or at the time of payment thereof, whichever is earlier.