13 January 2020
Hello All, I've a couple of doubts in understanding TDS application in Credit Note. Hope you can clarify it.
Consider I've a tax invoice
Invoice 1 Base Amount : 100 GST : 18 TDS : 10 ----------------------- Total Payable : 108
1. So if the seller has to issue a credit note the above A. Will the credit note be of 108 or 118? B. In case I do not want to transact with the seller/vendor anymore, will he issue me a credit note of 108 / 118? And much cash will I receive from the vendor? C. How does the seller/vendor deal with TDS? D. When I apply my credit note for the above invoice in a new invoice (Invoice 2), will I apply 108 against the invoice payable value(excluding the TDS) or will I apply 118?
Its very confusing for me on how the reconciliation will work for TDS.
CAclubindia
