To know date of payment/credit is important while making work of income tax regarding tds/tcs. There are some questions regarding date of payment.
1) Tds deposit date is different from Date of Payment or not.
2) Meaning of Date of Payment or Date of Credit.
3) TDS/TCS is liable on the basis of Date of Payment or Date of Credit.
4) What is base for making Quarter for submitting etds/etcs return.
1) Yes, Tds/Tcs deposit date is quite different from Date of Payment or date of Credit.
2) Detailed meaning of date of payment or credit is given below:-
a) Date in which Bill Amount booked in Cash Book is called Date of Credit.
b) Date in which Bill Paid or Advance given is called Date of Payment.
Example :- a) A paid advance to B on account of advance on 15-April-2010 and receive bill on 05-July-2010 and enter in Cash Book on 10-July-2010.
It means Date of Payment will be 15-April-2010 and Date of Credit will be 10-July-2010.
3) Date for deduction of tds/tcs can not be fixed. Date of deduction of tds/tcs will be which ever is lowest in Date of Payment or Date of Credit. In above example TDS/TCS will be deducted on 15-April-2010.
4) Lower between date of Payment or date of Credit is the base in making Quarter for submitting etds/etcs return. There is no use of Date of TDS Deposit date.
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