Tds adjustment.

This query is : Resolved

SOURAV (Querist)
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02 June 2012 Kindly help me out of problem..
Say for example- if A ltd. asign a del credere agent and after sale we have dedeusted tds on agent commission of Rs10000 and made payment of Rs90000. Afterwards buyers bacame insolvent and we have recoverable amount of Rs 200000 from debtor.whther we will recover it from our agent/ and if so whether we will deduct TDS if we will recover Rs200000 from our agent.
Earliest Help is required...

Ki$hor B

Ki$hor B (Expert)
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02 June 2012 Your Q is not clear.

Am replying based on what I understood.

As long as you show "Commission paid" to the agent in your accounts, you can't recover the TDS.

The moment your agent refunds your commission, then you can adjust the TDS paid against future commission payable to the agent.

SOURAV

SOURAV (Querist)
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04 June 2012 Thanku for ur Rply Sir.But i wanna ask -Suppose our Del-Credere agent has only sold our goods to a single party and we have have already paid commission in advance Rs90000 and deposited TDS of Rs 10000 for the proposed sale of Rs1 Crore by him.He sold our goods of Rs50lacs only and we have recovered Rs 40 lacs from the debtors. Now the party became insolvent and we have our agent cannot sale our goods. Now the Question Whether we can recover our Rs 10lacs (50-40). And what to do with extra tds we had deposited on proposed sale of 1 Crore.

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Ki$hor B

Ki$hor B (Expert)
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04 June 2012 Sourav,
If you join a company, do you get a months salary in advance i.e. at the beginning of the month?
I've seen co.s paying salary only when the month ends.

Your Q is technically incorrect, a prudent businessman never pays commission in advance.

Any extra tds can be adjusted against TDS wrt furture payments.