When we receive expense bill of party ,it is not necessary that we make payment on Same date

Hence Bill Date and Payment date may be different

Also in some cases, payment may be made in advance and bill received later

 

When is TDS to be deducted?

It is to be Deducted on

Date of Bill Received

Or

Date of Payment

(Whichever is earlier)

 

When is TDS to be deposited

It is to be Deposited by 7 th of next month of deduction.

Example

TDS Deducted in January, to be deposited by 7 February

TDS Deducted in February, to be deposited by 7 March and so on

However for March, it is to be deposited by 30 April and not 7th April

 

Examples

 CASE-1

When is TDS to be Deducted and Deposited - When is TDS Due

Assuming Bill Received on 10th April and Payment Made on 15 April

When TDS is to be Deposited ?

View Answer

CASE-2

Bill Received on 10th April from Max for Consultancy Service Payment made on 15th Sept.
When is TDS Deducted & when Deposited ?

View Answer

CASE-3

Payment Made in Advance

The Company entered into connect with
Max Ltd on 15 July or 40,000

Whole amount paid in advance on that date

Bill Received on 18th September from Max for Consultancy Service

When is TDS Deducted & when Deposited ?

View Answer

CASE-4

First Advance paid then Bill Received
Then Balance amount paid
The Company entered into Contact with Max for Consultancy Services on 15 July

As per contact 20% paid in advance on 15 July
Bill Received later on 18 September

Balance paid to Max on 14 Nov.
When is TDS deducted and deposit 

View Answer

SUMMARY

What is Date of Deduction in following cases?

Bill Received

On

Payment

Made

On

TDS Deducted on

TDS Deposited on

2 July

3 July

 

 

2 July

1 July

 

 

2 July

30 June

 

 

2 July

30 June 30%

15 Aug 70%

 

 

2 July

30 April 10%

15 May 20%

18 July 30%

18 Sep 40%

 

 

 

View Answer
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About the Author

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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .