Become a Govt. Certified GST Practitioner in just 60 hrs. Register Now!

Tds deduction

TUSHAR (SENIOR ACCOUNTANT) (36 Points)

19 July 2013

I Have received a bill of Rs. 40000/- (against labour chrgs) & i have raised a Debit Note of Rs. 5000/- against same bill.

On which amount i should deduct TDS, on Gross i.e. Rs. 40000/- or on Net i.e. Rs. 35000/-

Reply
Follow
Share

2 Replies

SAURABH NENE (Chartered Accountant) (226 Points)
Replied 19 July 2013

Dear Tushar,

You have not mentioned nature of debit note raised. If it has the effect of reducing your liability on account of labour charges payable to contractor then TDS shuld be deducted on Net amount.

However if debit note is for recovery of some previous dues or some other charges or any other thing which is in the nature of account adjustment, then TDS will be applicable on Gross Amount

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

TUSHAR (SENIOR ACCOUNTANT) (36 Points)
Replied 19 July 2013

Originally posted by : SAURABH NENE
	Dear Tushar, You have not mentioned nature of debit note raised. If it has the effect of reducing your liability on account of labour charges payable to contractor then TDS shuld be deducted on Net amount. However if debit note is for recovery of some previous dues or some other charges or any other thing which is in the nature of account adjustment, then TDS will be applicable on Gross Amount