TDS on Discount

Shriram Ramachandran (IPCC Student CWA Inter & Processing officer in GNSA Infotech Ltd)   (492 Points)

01 May 2011  

Hi Friend, Seniors & Experts

            An Assessee (Company) provides a contract of Printing & Stationery to a Person (Individual) which is subjected to TDS U/S 194C @ 1%. The Person raise Invoice (only one bill for hole year) for Rs.32000 & the company get Cash Discount of3000 for early payment. Now TDS have to deduct on 30000 or 29000 or no TDS has to be deducted?

Thanks in Advance,

R Shriram.