Advance tax is paid in between financial year on the basis
of income and expenses on companies turnover that arrive (
i.e. before march ). It is just for safer side company makes
the advance tax payment and at the time of return file
balance tax have to made.
Advance tax attract usually before the closing of a
financial year, i.e., before 31.03.03. Company usually pay
tax ( direct/ indirect ) on monthly/quaterly basis after
ending of month or quarter. But before closing of financial
year Govt. needs revenue in way of tax well in advnace . It
is called Advnace Tax.
TDS , the full form is tax deduct at source, means against
rendering a service it attracts. such as contractor,
professional, agent etc , whenever Cos'make payment to this
venders , it deducts tax from these parties / venders and
deposited with Income Tax Authority and issue a certificate
to the concerned deductee as a proof of paying income tax.
advance Tax is assese pay the he value the his income and
expenses he will pay the tax.
tds will be deducted by other parties. like employer to
employee. lessor to lesse. here the other party will deduct
the incometax. he will the tax to government.
Advance Tax paid on tax own estimated income for the next
AY in four qtr as % specified on estimated income where tax
liability is more than Rs 5000.00 however tds is deduted on
certain nature pmt to other as rate specifed.
Advance Tax is Paid by Assessee itself after estimating
his/her income He /she is liable to pay advance tax only
when his/her liability to pay Income tax is more than Rs.
5,000/- in Financial year and ofcorse, advance tax is to be
paid for cutrrent financial year in periodic installment and
percentage as described by the income tax act 1961
TDS is tax deduction at source which is to be deducted by
third party/payee while making payment for job/services
rendered at prescribed rate
Advance Tax is the Tax which Company makes the payment on
the basic of Estimated profit this is compulsory to made
the payment September, December and March 08.
But TDS - Tax Deducted at Source, this is deducted from
service render to the company i.e, Labour Bill,
Professional Bills and Salary of Employees this payment has
to made on as and when deducted e.g, if we deducted from
Rs. 1050/- TDS from XYZ on September 2008 this payment as
to made on or before 05th October 2008
Please explain, Suppose I am not adjusted entire year the Input Tax Credit for sales tax related. Sales tax authority will return back the ITC Amount suppose not claiming not adjusted, it is possible or other wise that amount shall I carry forward next year?