Dear All,
I have a vendor who accepts payment through credit card only and provides IT consulting services. they issue an invoice with GST, where expenses head IT Services ( 998313 ).
My Question is about TDS,
While booking the Invoice we deduct TDS deposit on their PAN but while doing payment we have to pay invoice amount as there is option pay after TDS. Then we ask the vendor to refund the TDS amount but they do not agree for refund. They said expense off that amount we can't help you.
Is there any provision to not deduct TDS as we have loss of the TDS or can take any action against them ?
Please advise
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TDS on IT consultanting
Replies (5)
Quick Summary
U need to Deduct TDS as per section 194J before making the payments to vendor, there is no option to avoid TDS.
if TDS is not deducted on payments made to indians then 30% expense will be disallowed.
- u can deduct the balance amount from future payments.
- U need to carefully refer your service agreement for legal action option.
if TDS is not deducted on payments made to indians then 30% expense will be disallowed.
- u can deduct the balance amount from future payments.
- U need to carefully refer your service agreement for legal action option.
Why you are making payment of gross amount??
You have to Gross up the expense.
In case of any further queries, kindly mail me at casoravgupta @ gmail.com
Thanks & Regards
CA. Sorav Gupta
(Practicing Chartered Accountant)
You should pay only balance amount net of tds.
Possible.
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