Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2012 Dear Sir,

A party raises a bill. TDS deducted and paid on time. But later on credit note passed or reduction in bill amount?

What treatment is to give? Can we reverse the TDS paid earlier? (in books we may but not in returns)

or can we adjust such TDS against another party of same nature?

CA SUMiT PATWARi

CA SUMiT PATWARi (Expert)
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01 February 2012 The party has got the credit for the TDS amount deducted by you. So where is the problem.

You cannot reverse TDS deducted and paid by you.

Let him raise a credit note.
Now what you will pay him is => (Original amount posted - TDS amount deducted originally - Credit note amount)