TDS Applicability on credit card payments
This query is : Resolved
07 January 2009
query is regarding Deduction of tax at source on payments made through credit cards or direct debit through internet by the vendor.
1. Whether TDS can be deducted through issue of debit note to the party in case payment is made in INR.
2. If the payment is made in USD does TDS liabilty arise taking in to consideration the DTAA with USA & if what mode should be followed for deduction of tax at source.
1. Whether TDS can be deducted through issue of debit note to the party in case payment is made in INR.
2. If the payment is made in USD does TDS liabilty arise taking in to consideration the DTAA with USA & if what mode should be followed for deduction of tax at source.
07 January 2009
I havn't come across any study material to refer. But it appears to me that Exchequer doesn't bother about methodology adopted by you for affecting TDS.
So you may debit the Party's Account in your books with TDS amount and remit to the Govt. For this purpose, date or credit or payment to Party is the criterion to decide the Due date but not date on which you raise Debit Note and journalise it in your books of account.
It is upto you how you realise the amount from Party.
The above position applies whether you make payments in INR or USD
So you may debit the Party's Account in your books with TDS amount and remit to the Govt. For this purpose, date or credit or payment to Party is the criterion to decide the Due date but not date on which you raise Debit Note and journalise it in your books of account.
It is upto you how you realise the amount from Party.
The above position applies whether you make payments in INR or USD
08 January 2009
Thank you very much sir, for your Prompt reply. But, as you know in online payments full payment has to be made and system doesn't accept less payments, in such situations is there any other way except raising debit notes??
09 January 2009
I appreciate difficulty.
You have to manage with your Vendors (Service Providers) to show TDS amount as deduction right in the Bill or route the documents thro banking channel for net amounts only so as enable you pay net amount to Vendor on line and comply with statutory TDS provisions
You have to manage with your Vendors (Service Providers) to show TDS amount as deduction right in the Bill or route the documents thro banking channel for net amounts only so as enable you pay net amount to Vendor on line and comply with statutory TDS provisions
Message likes :
2 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Inventory of finished goods
- Confusion around Form 26QB fields
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Disallowance of Section 43B(h) to sez units
- RCM INVOICING FROM NOV-2024
- Tds on building rent monthly
- GST Regis.
- Sale of property furniture sale
- Is correct way to find out capital of individual on 31st March
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
