02 July 2016
If a Seller company is raising Invoices to a customer regularly in odd amounts through-out the year and customer is making a round payment nearing to the invoice in Lakhs by RTGS/NEFT/CHEQUE/DRAFT. But all of a sudden due to some reason the customer is making payment of lump sum i.e. more than two lakh to the seller. The seller company is adjusting the amount in their account against each invoice less than a lakh to make the full and final payment of the outstanding dues from the customer. What is the impact of TCS @ 1% on this type of transaction?
CAclubindia
