Hi,
Can the invoice be raised including the TDS deductions?
We have a vendor who has provided us a certain service and raised an invoice for it. Our accounting guys in US say the amount mentoned the invoice should be the one after deducting TDS. Can the vendor give such an invoice?
You should be pay total billing amount on TDS Deduction.
the payment will be made as such
gross amount xxxx
add ST xxx
total invoice xxx
less tds... xxx
is the vendor in US
Hi,
The vendor is in india and has provided his services in india for the indian company. our parent company is in US and the payment for this vendor's service will be paid from US. The accounting guys at US say the invoice should reflect the final amount to be paid after TDS deductions. can this be done? Can the vendor give an invoice mentioning even the TDS deductions in it?
Hi Dipthi, How can the vendor give an invoice mentioning TDS deduction??. You should convince the US guy that your company has to pay the full amount of the Invoice - One part to the vendor and remaining part to the Central Govt in the form of TDS. Let him understand the provisions of Indian Taxation structure. It is your responsibilty to deduct the TDS amount and not the vendor's. So he will not give you the invoice as such since he also has to follow certain laws like VAT, Service tax.
CAclubindia
