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
Assuming Bill Received on 10th April and Payment Made on 15 April
When TDS is to be Deposited ?
View answer
TDS is deducted on
Bill Received 10th April
Or
Payment 15 April
Whichever is earlier 10th April
And
Deposited by 7 May (7th of next month of Deduction)
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
TDS is deducted on
Bill Received 10th April
Or
Payment 15 September
Whichever is earlier 10th April
And
Deposited by 7 May (7th of next month of Deduction)
CASE-3
Payment Made in Advance
The Company entered into contract 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
TDS is deducted on
Bill Received 18 September
Or
Payment 15th July
Whichever is earlier 15th July
And
Deposited by 7 August (7th of next month of Deduction)
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
TDS will be deducted and deposited 2 times
|
|
Bill received on |
Payment made on |
TDS Deduction |
TDS Deposit on |
|
20% TDS |
18 Sept |
15 July |
15 July |
7 Aug |
|
80% TDS |
18 Sept |
14 Nov |
18 Sept |
7 Oct |
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
|
Bill Received on |
Payment made on |
TDS Deducted on |
TDS Deposited on |
|
2 July |
3 July |
2 July |
7 August |
|
2 July |
1 July |
1 July |
7 August |
|
2 July |
30 June |
30 June |
7 July |
|
2 July |
30 June 30% 15 Aug 70% |
30 June 30% 2 July 70% |
7 July 30% 7 August 70% |
|
2 July |
30 April 10% 15 May 20% 18 July 30% 18 Sep 40% |
30 April 10% 15 May 20% 2 July 70%
|
7 May 10% 7 June 20% 7 August 70%
|