TDS deduction

[Guest]

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

[CASusheel Gupta]

In respect of expenses incurred (due, irrespective of paid or unpaid) in FY 2018-2019 deduct tax at source and deposit at the time of credit or payment whichever is earlier.

If done, no amount can be disallowed u/s 43(a)(ia)

CA Susheel Gupta

9811004443

[Guest]

yes but the same has to rectified. we have not followed this & tds deducted on payment basis.

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

this can be rectification for f.y.2018-19?

because tds has already been deducted & deposited for the suppliers to whom we have done the payments.

tds is to deducted for those suppliers whose payment is outstanding.

so if i pay the tds by 30.4.19 the matter is going to sort out for f.y.2018-19 ?

[Guest]

awaiting experts advise please

AI Summary

TDS timing: deduct at payment or credit; deposit accordingly to prevent disallowance under section 43(a)(ia). TDS must be deducted at the earlier of payment or credit; recognising provisions and depositing TDS for unpaid supplier liabilities after year end, and showing the deduction in the fourth quarter, can constitute a rectification. If the tax is deducted and deposited in accordance with the earlier of payment or credit rule, the expense should not be disallowed under 43(a)(ia).