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Reversal of Invoice after TDS paid.

Amit (Student) (46 Points)

06 April 2009

Is it legal to reverse an Invoice on which TDs is paid ? F.g

I received a service invoice on which i deducted TDS and paid via challan. Later i recieved a corrected invoice (w.r.t earlier invoice) and i need to reverse orginal invoice and account for corrected one. Is it legal to reverse the original invoice on which TDS is paid?

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7 Replies

Shudhanshu Agrawal (Business) (2570 Points)
Replied 06 April 2009

I think u can reverse the entry and the reason nobody knows on which entry you have deducted TDS until and unless you deposite the TDS return. And u can adjust that TDS with anyother liability as well. So according to me u can paas a reverse entry.

Thanks

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 07 April 2009

If TDS has not been paid reverse the entry.

If TDS has been paid, reverse only the payment portion, book the new payment, calculate the TDS- if it is less than earlier paid it is okay; if additional payment required, pay.

Tahseen Tabassum (CA-FINAL) (644 Points)
Replied 07 April 2009

Yes, what the Rajesh Sir told is the best way

deepak K Gujrati (CA-practice) (966 Points)
Replied 08 April 2009

Rajesh ji is correct but this is not practical. Even if TDS has been paid you reverse the original entry . Pass a fresh entry with new Value.Calculate and see the TDS liability . If it exceeds the original payment, pay the difference.

CA RAMESH KUMAR AHUJA (CA, DISA, LLB) (5452 Points)
Replied 08 April 2009

Pay the difference, if any and adjust the revised bill in accounts accordingly.

A B B (Job) (104 Points)
Replied 14 September 2010

Originally posted by : deepak K Gujrati
	Rajesh ji is correct but this is not practical. Even if TDS has been paid you reverse the original entry . Pass a fresh entry with new Value.Calculate and see the TDS liability . If it exceeds the original payment, pay the difference.