Tds of selling software

This query is : Resolved

Mohan Raj (Querist)
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23 May 2016 Basically we are doing software freelancing (Not a registered company). Recently we worked on service and quoted an amount and the buyer settled 20% shorter than asked amount. He's arguing he can pay only whatever comes after deducting TDS from the quoted amount. My understanding is that when a customer buys a product he priced more than actual price in terms of tax, Not the seller cuts off the price.

Ganeshbabu K

Ganeshbabu K (Expert)
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23 May 2016 1)TDS will be deducted from payment made to service provider and it is as per law.
2)if you have not provided PAN to customer he may deduct 20% and you cant claim this tds in your incometax return .
3)it is recommended for you to provide your PAN to customer and ask to provide TDS certificate for TAX deducted