TDS on Credit Note

This query is : Resolved

Kumar Abinash (Querist)
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13 January 2020 Hello All,
I've a couple of doubts in understanding TDS application in Credit Note. Hope you can clarify it.

Consider I've a tax invoice

Invoice 1
Base Amount : 100
GST : 18
TDS : 10
-----------------------
Total Payable : 108

1. So if the seller has to issue a credit note the above
A. Will the credit note be of 108 or 118?
B. In case I do not want to transact with the seller/vendor anymore, will he issue me a credit note of 108 / 118? And much cash will I receive from the vendor?
C. How does the seller/vendor deal with TDS?
D. When I apply my credit note for the above invoice in a new invoice (Invoice 2), will I apply 108 against the invoice payable value(excluding the TDS) or will I apply 118?

Its very confusing for me on how the reconciliation will work for TDS.

Please help me out.

Thanks in advance.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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13 January 2020 A. credit note should be issued 118/-
B. Vendor will issue CN for 118/_

Amol S Joglekar

Amol S Joglekar (Expert)
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14 January 2020 please let me know if the TDS is deposited?

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