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.
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
CAclubindia
