27 May 2023
Dear Experts, I have a query related to TDS, we have raised tax invoice for services to the party for Rs. 1,00,000/- (GST), Party issued a Debit Note of Rs. 40,000/- + (GST) against the above Tax Invoice as well as we had also issued Credit Note for the same. Party paid a sum of Rs. 60,800/- to us after deducting TDS @ 10% on Rs. 1,00,000/-. Now party said that we have to deduct TDS on Credit Note i,e. on Rs. 40,000/-. Should we liable to deduct TDS on the Credit Note issued by us or Debit Note issued by the party? Thanks in advance
27 May 2023
No need for any TDS on credit note. Party should deduct TDS on the amount paid and not on 1 lac. Party has to refund 4000 of excess TDS deducted.
CAclubindia
