TDS reverce related query

This query is : Resolved

Pooja Bahukhandi (Querist)
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01 August 2025 if we deducted tds and paid after deducted amount to party but after 8 month we received its credit note than should we reverce its tds or not

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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01 August 2025 If TDS has already been deducted, paid to the government, and the TDS return filed, but you subsequently receive a credit note (such as for a purchase return or value reduction) in another quarter, the standard practice is that TDS adjustment or reversal is allowed only if the amount is actually refunded by the seller—not simply based on receipt of a credit note.

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