TDS deduction

[Onkar Shete]

tds is to be deducted as payment or credit whichever is earlier

but previously we have followed payment basis means tds has been deducted while payment to party.

to bread this practise i need to close these transactions in f.y.2018-19

so whichever the suplliers payments liable to tds deductions are unpaid as on 31.3.19, i will make provision for tds, deposte the tds by 30.4.19 & show it in Q4 of f.y.2018-19 by 31.5.19

so can the expense would disallow?

please advise

AI Summary

Participant Seeks Advice on Correcting TDS Practices to Avoid Expense Disallowance Under Section 43(a)(ia) for FY 2018-19. A participant raised a query about TDS (Tax Deducted at Source) practices, noting that they previously deducted TDS upon payment rather than at the time of credit or payment, whichever is earlier. To correct this for the fiscal year 2018-19, they plan to make provisions for unpaid supplier payments liable for TDS by March 31, 2019, deposit the TDS by April 30, 2019, and report it in the fourth quarter. An expert advised that if TDS is deducted and deposited at the time of credit or payment, no expenses would be disallowed under section 43(a)(ia). The participant seeks further expert advice on rectifying past practices.