Return material
This query is : Resolved
Rajkumar Gutti
(Querist)
29 November 2024
Material received on 21/11/24 & due to defect same whole material return to party on 25/11/24
To deduct tds u/s 194 Q is required in first situation
And reverse the tds in second situation.
Or not showing tds in any situation
What is right way to show tds
To deduct tds u/s 194 Q is required in first situation
And reverse the tds in second situation.
Or not showing tds in any situation
What is right way to show tds
Dhirajlal Rambhia
(Expert)
29 November 2024
If Payment was Made:
At the time of Payment: Deduct TDS u/s 194Q on the value of the goods purchased when paying or crediting the supplier.
On Return of Material: After returning the defective material, you should adjust or reverse the TDS in your books. This means you should reflect this reversal in your TDS return and records.
If No Payment was Made:
If you did not make any payment (for example, if the material was never accepted due to defects), then you don't need to deduct TDS as there’s no transaction to account for.
At the time of Payment: Deduct TDS u/s 194Q on the value of the goods purchased when paying or crediting the supplier.
On Return of Material: After returning the defective material, you should adjust or reverse the TDS in your books. This means you should reflect this reversal in your TDS return and records.
If No Payment was Made:
If you did not make any payment (for example, if the material was never accepted due to defects), then you don't need to deduct TDS as there’s no transaction to account for.
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