student
51 Points
Joined June 2009
The provisions of TDS are applicable for certain kinds of expenses that cross the specified threshold limit. In the case of Sundry Debtors, the transaction is not of the nature of expense. Therefore, TDS is not applicable. The relevant provisions are not applicable even if you are repaying some amount on account of goods rejected by your Debtor. However TDS recievable is applicable in case of Sundry Debtors which can be claimed as a deduction from your tax liability.
But, before claiming deduction please ensure you are not claiming deduction for VAT TDS.