Tds deduction

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Querist : Anonymous

Querist : Anonymous (Querist)

15 January 2013 Sir,

we are making payment to our suppliers after deducting Cash Discount. my suppliers are asking to deduct TDS on the same. there fore please suggest that,Is TDS applicable on Cash Discount ?

CA Prashant Gupta

CA Prashant Gupta (Expert)
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15 January 2013 first of all TDS is on services. I told you because in practical we don't get cash discount on advance for service
but we assume that you get CD on early payment. Then you need to see on which amount you booked the bill. if bill is booked by full amount then TDS will be on full amount. But if you booked bill by less amount then you will deduct TDS on less amount.
paid amount or booked amount whichever is more. on that TDS will be deducted

anurag

anurag (Expert)
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15 January 2013 Assuming that the question is in respect of cash discount after the bill is booked. TDS has to be deducted on the full bill value.

Querist : Anonymous

Querist : Anonymous (Querist)

15 January 2013 Thanks Sir,

But my query is related to goods.

we are making payment to our suppliers after deducting Cash Discount against goods supplied by them. my suppliers are asking to deduct TDS on the same. there fore please suggest that,Is TDS applicable on Cash Discount ?

anurag

anurag (Expert)
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15 January 2013 Please ask your suppliers under which section they want the tds to be deducted. It will clarify the issue( may be the bill is aggregate of goods and services etc issues)

CA Prashant Gupta

CA Prashant Gupta (Expert)
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15 January 2013 on goods transactions there is no TDS.
I told you this in first line
your supplier can charge TCS from you if it is applicable. But how can you deduct TDS on goods purchased.
Ask your seller in which sec he wants you to deduct TDS

Querist : Anonymous

Querist : Anonymous (Querist)

15 January 2013 Under Interest head on Cash Discount portion.

CA Prashant Gupta

CA Prashant Gupta (Expert)
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15 January 2013 it is not applicable
yes, it is your income. but how can you deduct TDS on that.
Party is wrong.

Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2013 thanks. but should supplier deduct the TDS

CA Prashant Gupta

CA Prashant Gupta (Expert)
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22 January 2013 supplier can cahrge TCS if applicable
he is selling goods so he can't charge TDS.