Lets check our knowledge

22,47,200 plus his commission...

IT IS WRONG

THERE IS NO COMMSION THE PARTY ALSO WANT TO BOOK THE EXP TO DECREASE HIS TAX LIABILITY

20,00,000

hmmm...gd

The cash that you have to pay is Rs. 20,00,000/- (you recieved 2247200 in bank & TDS. since the party will book cenvat credit of the service tax you deducted hence actual cash paid will be 20 lakh)

if no commission then 2247200, provided the party cannot take the cenvet (i.e the party is neither a manufacturer nor a service provider.)

TDS:-

It will be allowed to you in Income Tax Return.

Hence does not have any negative Impact.

Sales Tax:-

You have to pay the same to Govt. and not able to get it back.

Hence it has negative impact

Therefore amount actually payable to party

Invoice Amount -           2,247,200/-

Less:- Sales Tax -          247,200/- (Not able to recovery in any form)

Net amount payable-  2,000,000/-

assuming u have no Tax Liability on your profit.

Otherwise Tax Liability of Your also consider while calculating the amount to be paid in cash

As it is fake invoice and just book entry, I think that there is no need to pay any cash

DUDE AS MENTION IN THE QUESTION OHTER PERSON WILL PAY BY CHEQUE AFTER DEDUCTING TDS

20,000 only you have to pay,

RULE 6DD,...

the full amount plus commission if any.