Tds on discount recd

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This discussion clarifies the tax implications of receiving discounts on invoices. It confirms that Tax Deducted at Source (TDS) should only be calculated on the net amount of the invoice, after any applicable discounts have been applied. Therefore, TDS is not deducted on the full invoice value but on the reduced amount.

ramanathan tm

ramanathan tm (Querist)
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11 June 2021 NAMASKAR, I AM AN ACCOUNTANT FOR AN TAX AUDIT BUSINESS INDIVIDUAL BUSINESS.. THE COMPANY IS UNDER TRADING OF EDIBLE OILS AND GHEE ETC. THEY RECENTLY RECD AN E INVOICE WITH A DISCOUNT OF RS.103050/- IN THE INVOICE ITSELF.
WHETHER WE HAVE DEDUCT TDS ON ON THIS AMOUNT EARNED I.E. RS. 103,050/- WE WILL BE THANKFUL .

ramanathan tm

ramanathan tm (Querist)
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11 June 2021 KINDLY GIVE REPLY SIR