TDS Applicable on prier period expenses or not ?

[Asked by Guest]

Dear Expert,

kindly guide, that TDS can be deducted on prier period exp (expense booked in current period but it is related to previous year) or not. (if yes, why?)

Rgd

vikram

[Ganeshan Kalyani]

Expenses accounted or payment made which ever is earlier TDS is deductible. Hence prior period expenses booked in current month, TDS is deductible in current month. Thanks.

AI Summary

TDS liability arises when an expense is accounted or paid, so prior period expenses booked now attract withholding.
TDS obligation arises on the earlier of recognition or payment of an expense. Prior period expenses booked in the current month attract TDS in the current month because the withholding duty is determined by the earlier of accounting or payment; TDS must therefore be deducted when the expense is reflected in the books or when paid, whichever occurs first.