Ram (NA) (98 Points)
28 February 2012When a consultant, on who's fees TDS is being deducted by the Client company, sends an Invoice should it specify the total amount or only the amount minus the TDS.
For example: If the consultant fees is Rs50,000 should he send an invoice for Rs50,000 or for Rs45,000 (i.e.reducing the 10% TDS amount)
It would be helpful if anyone can give a template of an invoice which can illustrate the above issue.
kanagaraj
(CHARTERED ACCOUNTANT)
(793 Points)
Replied 28 February 2012
Mr Ram,
your bill is not necessarily mentioned TDS. Deduction of TDS is deductors work
Amit Singh
(Chartered Accountant)
(270 Points)
Replied 28 February 2012
Mr Ram,
It should not mention TDS or amount net of TDS.your bill should be of gross amount charged which may include service tax components which should be bifurcated in bill.quoting of TDS to be deduction & net amount with gross amount is generally used when we give quotation to client & not at the time of issue of bill
A TRINADHA RAO
(Accountant & CA IPCC STUDENT)
(155 Points)
Replied 04 March 2012
Mr.Ram
Exp:
Consultant Fees 500000
Service Tax 10.30% 51500
-----------
Total Bill 551500
------------
TDS Deducter deduct Tds on 10%
TDS Amount = 10% of Rs. 551500= Rs.55150
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