Who is liable to deduct tds

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 ?

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