03 February 2024
Suppose, during F.Y. 2023-24 Mr. A(Turnover>Rs. 10 Crore in F.Y. 2022-23) purchased goods from Mr. B(assuming GST exempt goods) on following dates:-
04 February 2024
Circular no. 13 of 2021 dated 30/06/2021 of CBDT points out this issue as follows:- 4.3.3 Further, with respect to purchase return it is clarified that the tax is required to be deducted at the time of payment or credit, whichever is earlier. Thus, before purchase return happens, the tax must have already been deducted under section 194Q of the Act on that purchase. If that is the case and against this purchase return the money is refunded by the seller, then this tax deducted may be adjusted against the next purchase against the same seller. No adjustment is required if the purchase return is replaced by the goods by the seller as in that case the purchase on which tax was deducted under section 194Q of the Act has been completed with goods replaced.
After considering this, please tell the amount of TDS to be deducted in the example quoted by me
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