Reversal of Invoice after TDS paid.

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?

Replies (7)

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

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.

Yes, what the Rajesh Sir told is the best way

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.

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

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.

 What if already paid excess? what about refund?

Sir , 

What is the Law when TDS deducted from Invoice and even deposited but amount under invoice has not been paid. 

As there any ruling which say that TDS is deducted at the time making payment , Please suggest 

With Regards 

Uday Kumar 

 

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