TDS deduection at the MIGO or MIRO

[Gourav Arora]

Expert.

As in SAP when MIGO is done any service then first expense account is debited and clearing account is credited.at the time of MIRO clearing account is debited and party account is credited. in that case when TDS liabilty will arise (section saw credied to any acount)and if for any MIRO pending on  month end we make a provision for that whether it is a delay in deduction or not..

Regards

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above said issue? If not please inform.

AI Summary

TDS liability timing: determining when tax must be deducted under accounting entries in procurement workflows. Query concerns whether TDS liability arises at MIGO when expense is debited and clearing credited, or at MIRO when clearing is debited and party is credited, and whether making month end provisions for pending MIROs constitutes a delay in deduction or affects the obligation to deduct tax at source.