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TDS ON CREDIT NOTE

TDS / TCS 7008 views 1 replies

We have paid to vendor amc charges quarterly ----- rate is fixed

I.e 42000/- quarterly advance

We have paid amc from OCT 2019 to DEC 2019 - 42000/- plus gst (tds is deducted 2% 194c and also tds return filed )

Now we have to deduct 14,000/- for not doing amc for nov 2019 month)

So he has given credit note - AMOUNT 14000/- plus gst

We will deduct this amount from JAN 2020 TO MAR 2020 bill payment 

bill amount - 42000/-- plus gst LESS 14000/- plus gst (credit note)

AMC Expenses in books - entry will DR (42000-14000) = 28000/-)

MY question is:- 

TDS SHOULD BE DEDUCTED ON 42000/- bill amount

OR

42000/- LESS CREDIT NOTE AMOUNT 14000/- =28000/-

PLS REPLY 

THANKS

 

 

 

 

 

Replies (1)
You have right to deduct TDS on adjusted amount if any in the last quarter.

It's a question of TDS of Rs. 280/- being Nov TDS mistakenly deducted. You can let go that excess amount provided deductee find no problem. The deductee will claim higher amount of TDS in his ITR. No big issue.


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