Customer X has deposited Rs 1,50, 000 for purchasing Scrap Material. in the month of June'15
However he got material of Rs 1,25,000/. TCS has been duly collected on Rs 1,25,000/ (i.e. Rs 1250) in the month of June'15.
No material is left . Hence the customer should be refunded the balance amount Rs 23750 (i.e. 25000-1250).
But the supplier did not close his account during the month June'15.
My Question is whether TCS is applicable on Rs 23750 (as stated above)?
Regards
CAclubindia
