Hi, I have recently started a business.
I bought some goods for Rs.7 lakhs and am trying to sell them off for Rs.10 lakhs. So, my profit would be 3 lakhs.
I understand that the buyer has to deduct 10% TDS from the above amount. He says that he will deduct 10% on whole invoice amount of Rs.10 lakhs.
Is he right in deducting the TDS on invoice amount or can I request him to do it on a lesser amount (on profit of Rs.3 lakhs).
As per Tax laws, should TDS be deducted on Invoice amount or Profit amount.
CAclubindia
